Looking for Guidance on Using Home Sale Equity to Start Section 8 Investing

[Alexsis Venable]

Hey everyone,

I’m considering selling my primary home in South Jersey (worth ~$360K, owe ~$248K) and using roughly $85–90K in equity to start investing in Section 8 rentals.

My goal is to create long-term cash flow and gradually scale to multiple properties using a BRRR-style strategy.

I’m currently looking at Cleveland, Huntsville, Birmingham, and Memphis for affordability and rent potential.

A few questions for experienced investors:

1. Which of these markets are still strong for Section 8 in 2025?
2. Any pitfalls to watch for when buying out of state?
3. Would selling my home and starting this strategy be wiser than renting it out?

I’d really appreciate any advice or insights — just trying to approach this smartly.

Thanks!

[Jonathan Greene]

This would be the worst decision you've ever made in your life, other than creating this post and reading all the AI that people are replying to you with to help you lose your savings and cripple your financial foundation for a lifetime.

Section 8 rentals are for professional landlords with more systems than you can ever imagine. It's an absolute landmine for a new investor and not a place to put money that you earned from owning a home. It's catastrophic and your "friend" should immediately be removed from all of your social media and cut out of your life.

Any time someone says it's a good idea, they are pitching you. Come to my market. It doesn't matter what market, you will lose it all doing this without any question. Section 8 is high-touch, high-maintenance, and not at all BRRRR-friendly. Someone probably told you it's "government-backed" and virtually fool proof. They should be slide tackled.

DO NOT PROCEED under any circumstances and de-friend that person forever.