Looking for experiences with Section 8 housing

5 Replies

Looking at purchasing a four-plex in a part of the city that is mostly Section 8 housing. I have invested in Mobile Home Parks so I can assume some of the issues that I’ll have to deal with. Just looking for anyone with experience to give me any guidance on the good and the bad of section 8 rentals. 

I have a couple section 8 properties. I love the program and would convert some of my other properties if the opportunity presented itself.
I don't have anything bad to say about section 8.

I will say you must screen all applicants the same way.

Originally posted by @Parker Eberhard :

@Dane Espegard listen to the BP Real Estate Podcast #356 with Joe Asamoah for his perspective on section 8

Guys, I listened to that same podcast and it prompted to me to rethink what I plan to do with my primary residence here on the West side of Houston.

This house is about 2450 square feet. Moved here in 2008 and we paid about $135k for it, using a VA loan. Now after a refi or two the balance is just under $105k, but the value (with a few minor updates) is at least $200k.

It was built with 4 bedrooms, and this room where I am sitting as type this is walled in, and could be a 5th with the addition of a closet.

If I am reading this right, on this link the City Houston will let me rent place out for $2700 per month. 

http://hchatexas.org/housing-choice-voucher-program/

See we were thinking we might could rent this place out for $1600 a month, tops.  Usually the smaller 3/2 houses around here rent for about $1300-$1400... some of the larger ones go for $1500.  So I had been operating under the idea that this house would probably cashflow, just barely.  

Then I heard this podcast.

Right now my mortgage is about $1300, that is with tax and insurance in there. OK the tax and insurance will increase a bit, once this turns into rental property, but still. I should be clearing $1000 / month easy.!! 

Of course I realize there is property management and maint,capex etc.

My wife wants a newer but smaller house, so the question has been what to do with this one. I always considered it too big to really work as rental property so the plan was to sell it - sort of a live-in flip. 

The kid is in 10th grade and we plan to stay put for another 24-30 months, but after that we'll be in the market to move. That gives us time to get our debts paid off and our DTI really whipped into shape.

Now the wheels are really turning in my little head.

I could maybe refi this house using a conventional loan (paying off the VA loan), and probably pull out a good $30-$35k in equity, which could be used as down-payment on a new primary residence or hang onto it and put it toward another rental property. I know that the VA loan can be used again, so we might try that.

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