Section 8 can make or break this deal!!!!!

[Collin Bryston Adams]

A new property I am looking at in DFW really excites me! 

There are no rent comps for it and only 2 home comps to compare asking price with, we have nothing to go off of. 

The best rent I can come up with for this property is $1700-1900. At that price though my numbers quickly go red. Where this deal gets fun though is I found section 8 has a huge shortage of homes for this area and pays $2400 for a home like this which quickly moves this deal to a several hundred cash flow. If I convert the garage into a bedroom I also get $2800 rent from section 8. Which makes this a slam dunk deal. 

The fear I have is how hard will it be to find a section 8 tenant for this home or a self pay tenant who wants to pay my listing price of $2400. Like I said, if I do not get this rent payment the property is in the red. 

How would you play this? 

NOTE; the property is a 4 bed 2.5 bath. Garage would be bedroom #5. How many section 8 families need 5 bedrooms???

[Patti Robertson]

@Collin Bryston Adams Remember - 5 bedrooms means 8-10 bodies in the house. Increase your wear and tear budget of you go this route!