Section 8 Newbie

1 Reply

I'm finally getting close to starting my adventure in Real Estate.  I'm interested in section 8.  Best books to buy?  How much money do you think I need to get started if  I don't want to go the no money down route.  I would say I'm a cautious investor so I want to hedge my bet as much as possible.

Hello Christian,

My first question is why section 8? 

You should have a decent nest egg. Owning houses is not cheap. One furnace can set you back $5,000 on the cheap side and wipe out your cash flow for an entire year. Times that by 20 or 40 houses it can get quite expensive to carry a large portfolio. Most lenders want to see some skin in the game now a days so I would plan on saving a little money to put into the deal.

As for books, there are no books that can prepare you for the real world of section 8 housing, lol, but one I would check out to start is The Section 8 Bible by Michael McLean and Nick Cipriano.  Gives you some good tips on how to bullet proof your house to protect from tenant damage, inspections, etc... some basic information.

As a cautious investor be sure to study the section 8 strategy very carefully. It can be a wildly successful cash flow strategy for investors with the right temperament but I have also seen it chew up very wise seasoned investors and spit them out the other side. Just do your homework and most of all screen, screen, screen your tenants. 

Cheers!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you