HUD Rental. To do or not?

Question

Hello everyone.... glad to finally post a few questions. We bought a 1 bed 1 bath house that was renting for $465, Tennant in place. It was not a good relationship so we ask him to leave. (Was there 8 yrs and old owner did nothing) they moved out we fixed painted, new hvac, new appliances, cleaned outside. Its looks good. We did the rent calculation on BP. We are in the range we got it for rent for $625. We have alot of lookers but some we just didn't like. Now here's the question. We like this lady and her 2 yr old daughter filled out app. We liked her then she asked the question.. DO YOU ACCEPT HUD?. I said I don't know ill have to research it. She is approved already for 700.

1) Would you do it?

2) how hard is it if she doesn't pay to evict?

3) what are your experiences?

Thanks for your help. We are working hard on this. We had 0 rentals in July now we have 4. Thanks to bigger pockets for the push.

1)  Would you do it?

2)  how hard is it if she doesn't pay to evict?

3)  what are your experiences?

Thanks for your help.  We are working hard on this. We had 0 rentals in July now we have 4.  Thanks to bigger pockets for the push.

Edward B. · Answer

@Chad Crego, it really depends on where you are at. And it varies town by town depending on who administers the program. I know some people who swear buy it. It can be a pain qualifying your property and passing the inspection, but they look at it as rental insurance because the government will pay even if the tenant stops. I have property managers recommend that I allow it because it is so hard for the tenants to get their voucher they are very careful not to lose it. I have had other property managers say to run away because it is very hard for tenants there to lose their voucher and there are no repercussions on them or recourse for you if they trash your property. Bottom line, it is kind of a location specific question, but I would not dismiss it out hand. It can be a very good deal for the landlord and tenant in the right area and under the right circumstances.