Section 8 rental for wholesale

[Nancy Brook]

Hi - I've been wholesaling for a few months now. This week, I had a call about a turnkey Section 8 rental. It's in a rough area of town, so the return would be better than average due to the location. 

I'm curious, what would you say is a good gross return as an investor? With her asking price, it's at nearly 25%. I haven't done the inspection yet, but she says it's in good shape with a good tenant in place. I have asked a couple of my investors for feedback but thought I'd throw it out here as well.

[Dawn Anastasi]

@Nancy Brook being in a bad section of town you might have a lesser pool of interested buyers. The return on paper for a bad area is often higher than the actual return due to higher expenses.