Buy Low and Go Section 8 route

[Jared Weaver]

So...Here is the process that my dad and I are currently following.  We have been in the process of buying very low priced "fixer upper" type singles, duplexes and triplexes in an area near our homes that is "lower income".  The Housing Authority/Section 8 office is 30 minutes away and we go through that process often in regards to these properties.  For example, we just purchased a duplex for 17,000 and are expecting somewhere in the ball park of 13,000 dollars of work to need to be done to it.  One unit is 3 bedrooms and the other unit is 2 bedrooms.  The Section 8 voucher in our area is about roughly 1,300-1,400 for that type of apartment.  So...doing it this way the cap rate is quite high, etc. 

Does anyone else out there use Section 8 and invest in this manner, buying lower priced properties (cash), fixing them up and then renting out to Section 8 tenants???

Thanks for any input or advice. 

JARED