Pros and Cons of Section 8? Never done it

[Carol Burns]

Hi, I have a 3/2 sfh up for rent.  I've had several people ask about section 8.  I've never done this before and really don't know a thing about it.   Would love to hear from you all who have taken it.  Pros?  Cons?  Located in Clover, South Carolina if that matters.  Asking rent is $2100.  

[Nadeem Alamgir]

Pros: higher cash flow, guaranteed rent from the housing authority as long as you’re not in violation, tenants usually stay longer than private renters, and the regular Section 8 inspections help keep the property in decent shape from the many inspection reports I've seen.

Cons: Inspections can sometimes be a headache, delays move. You have to keep up with their guideline. Doesn't promise decent tenant quality and usually the higher section 8 cash flow deals are in rougher parts of town. 

It’s definitely a strategy that works, plenty of Section 8 coaches will vouch here but it comes with its own set of problem. A lot of investors I know prefer less cash flow in better neighborhoods with stronger appreciation and fewer headaches.