Buying Rentals For Section 8 A Good Idea?

[Brian Willie]

Hi, I'm newer to the real estate investing world and wondering if buying lower cost houses and getting them into the Section 8 program is still doable? What are the pros and cons? I'm of course concerned about the quality of tenants and I know inspections can be difficult but wondering if there are management companies who only do this and if it can still be a profitable way to invest. Thanks!

[AJ Exner]

Quote from @Brian Willie:

Hi, I'm newer to the real estate investing world and wondering if buying lower cost houses and getting them into the Section 8 program is still doable? What are the pros and cons? I'm of course concerned about the quality of tenants and I know inspections can be difficult but wondering if there are management companies who only do this and if it can still be a profitable way to invest. Thanks!

 Hey Brian,

Absolutely, there are a TON of people doing this right now as it gives you the ability to still employ a BRRRR-strategy with low cost housing stock, get it rent ready without "too much" rehab (comparatively speaking), and get a stabilized income to rent out in that area.

Highly recommend a PM that is aware of the ups and downs though. The potential for cash flow is certainly there, so you just don't want to get caught up with a bad few. Let the professionals handle that.

The thing to certainly be aware of is, when you are financing, be aware of property price minimums that many lenders might have. If you are working in that space, you might run into loan/property minimums that could slow you down. Make sure that any lender that you might use is aware of your strategy and isn't surprised when you find a good property for less than $50k.