Should I close on a 4F property with 2 section 8 tenants?
The property is in a desirable location in Bronx, NY. It is a four family property with 2 section 8 tenants. One with an older lady, section 8 pays about 75% of the rent. Seller said she has been in that apartment for the last 5-6 years. The other is a lady with a young son, section 8 pays 65% of her rent. The seller just renewed both their leases for 2 years. And the rents are at market. I saw both apartments and it seem in good to excellent condition. The seller said both are good tenants. The lady with the son just complains a lot but pays rent on time. None of the tenants are late.
The 3rd unit is rented to 4 individuals with above market rent. And 4th unit will be vacant.
With the current rent roll, it seems like it will cover it will cover my mortgage, PMI and Insurance.I will have about $600 left to cover bills and other expenses. I am putting 10% down.
This is my first investment. I have a full time job.
The price is good for the area. My only worry is about the section 8 tenants. Should I proceed? Are there scenarios I am not considering? Or am I asking for trouble with the section 8 tenants.