Section 8 Properties on the south side of Chicago

[John Schaffer]

Just looking for some feedback as the LLC I am a part of is looking to BRRRR a multi-unit in the Englewood neighborhood. The goal is to purchase/renovate with cash and end up looking for conventional tenants but falling back on section 8 tenants if conventional doesn't pan out. Then cashout-refi and hopefully we can then purchase several buildings with the formula we used for building 1. We have run the numbers and they seem to be showing some room for success but obviously, it is an area of the city which is home to gangs/guns/drugs, so doesn't exactly appeal to all renters. Curious if anyone has had success/failure in the area or just general feedback towards the idea. Thanks, any input is appreciated.

[John Warren]

@John Schaffer the most important part of your whole strategy is how you are going to manage the assets. You are going into a D neighborhood so you will need strong management to make it work. Many have tried in the tougher Chicago neighborhoods, but few have done well.