Updated over 11 years ago on . Most recent reply
Section 8 VS the alternative.
We are closing on our first two rental properties next week and we are preparing to screen potential renters. The previous owner has the properties ready to rent for section 8. He actually has a renter lined up for both homes but at below market rent. He was going to rent Property 1 for 500 and Property 2 for 625.
(Property 1: Market = 600-650 Property 2: Market 750-800)
His explanation was that it is paid 100% by the government and direct deposited into your account. So he was alright with the much lower rent. IMO I would rather find some good renters that will pay the market rate. The extra 100-150 per month on each property adds up!
Is the benefit of guaranteed rent paid by section 8 worth the money lost??
Most Popular Reply
Nope, I would never trade a guarantee for a 20-25% discount off market prices! If you screen your tenants thoroughly and do all the right things regarding property management and maintenance, you will end up thousands of dollars ahead each year by renting at market prices.