Switch Indy duplex to affordable housing tenants?

[Daniel Dixon]

Hey BP community!

We’ve got an Indianapolis C-class duplex that we successfully BRRRRed in 2020. However, tenants have not been great, basically late on rent and/or leaving repairs that eat all profits.

Appreciation would allow us to get out with a modest profit, but I’ve posed going Section 8 via the Affordable Housing website to my business partner. We’d have a subsidized tenant, so at least collecting a majority of the rent, and I understand that these tenants usually stay longer.

I know there is bureaucracy with Section 8 but can out up with that. 

Thoughts from other out of state investors In Indianapolis?

[Harvey Levin]

I have been a section 8 landlord in indy since 1985 and managerfor others since 2011 specializing in section 8.the most houses and doubles we have had with sec 8 is over 400 at 1 time.  Over 90% of my personal portfolio is c class with  sec 8 tenants.  It can be highly profitable but making quick repairs  is the number one way to stay profitable.  Without that tenats do not stay long term ( my definition of long term is 5 plus years)