BRRRR and section 8 benefits?
If i do a BRRRR is there any benefits on going section 8?
@Flavio Espinal depends on the location. If you’re in say a C pocket of a location I would actually suggest it because you have guaranteed payment on the housing portion and 99% of tenants will pay their portion on time so they don’t lose their voucher. Also on the buy side you’ll know in addition to your own inspection the condition is at least decently habitable because they inspect every year if it has section 8 tenants already in place.
If it’s a better area I would suggest to avoid it because they make increases more difficult to process and approve. Also the additional inspections to deal with may be a pain depending on the individual inspector and the tenant. I’ve seen them abate rent over the most ridiculous “issues” and then delay that permanent rent loss because tenant was difficult with access although this is very rare overall.
I had rent abated over a cracked floor tile. Most of the time the damages are caused by the tenant, sometimes intentionally.
@Flavio Espinal, sure. Plenty of people are successful operating pure Section 8 rentals. There's a learning curve, plus the stress of having to accept the governments standards.
Check your market and see if it's worth the risk. Can you rent it without and/or at higher rates?