6 unit section 8. what to know

[Mason B.]

There is a 6 unit multi-family building in Chicago's Douglas Park (subpar) neighborhood that advertises a "14%" cap rate as a "guaranteed subsidy." Aka section 8. It's also on the MLS. The building is $380k. Fully occupied. Annual rent collection is 55k, or around 4400 per month. The mortgage would be around $2k... too good to be true? There have been some smaller Improvements (furnaces, porch, Plumbing, Fence) but still room to value add.

Is section 8 that bad? If the income is “guaranteed” isn’t is less risky? Doesn’t it attract longer term tenants? Can’t i still pick and choose future tenants? How do you add value if you cant raise rent if the rent is based on averages? 

Aka, where can i learn EVERYTHING I’d need to know?