Anyone own MF properties in "bad" neighborhoods?

6 Replies

What has your experience been like? You can get some really great profit margins, but understandably there is headache... well, for a newbie, what kind of headaches are we talking about? Isn't Section 8 guaranteed rent?

I'm looking at Codman Sq/Ashmont parts of Dorchester and Bellingham Sq. in Chelsea.

Advice?

Higher vandalism, unsophisticated tenants who don’t have financial management skills, lots of baby sitting just to get rent paid, more evictions, more money spent on turns, less appreciation. Yes, the rent to purchase ratios are strong. The costs - financial and otherwiseare higher too. Personally I will only rent yo someone with a government voucher in the very low end neighborhoods. 

I wrote a blog that will give you a good SEC8 overview. 

Section 8 Blog

https://www.biggerpockets.com/blogs/9232/55313-intro-to-section-8---your-perceptions-vs-my-realities

I own a three-unit in Dorchester in an area that may be called mediocre. I have three section 8 tenants, but there are definitely headaches. If you go into it with the mentality of hoping for the best, but prapraring for the worst, you will do ok. I have dealt with many reapirs, roaches, noise complaints and even an oven that decided not to work on Thanksgiving! Still worth it, though! The tenants I have and have had are all over the spectrum in terms of reliability. Even though the money from Section 8 is guaranteed, there are still inspections annually and you stiull may chase the portions that the tenants owe.

@Adam Anderson Section 8 is a nightmare, I would only do it if I had a lot of barely mediocre multi family units in an F area... I did section 8 in my C class single family homes and I will never do that again for the rest of my life... I don't care if they were paying $2500 a month...lol