All Forum Posts by: Shane Moore

@Shane Moore It differs by area but I think many go into Section 8 because when renting to a low income tenant they feel safer with a S8 tenant than with a working tenant paying all their own rent. The perception and it may be true is that the tenant paying all their own rent is one crisis shy of failing to pay. I take who is qualified and I think you are still doing a service for people.  I have blue collar workers who I know were grateful for the chance to get a unit because they had less rental history and while they qualify aren't the highest earning or credit score.  They are not S8 but construction and local business employees. I have had some S8 applicants but they just take too long and that is one of the issues with S8, if you have lead time to fill a unit it is fine but if you don't it can take too long. Also they won't inspect until you have a tenant so for a fresh rehab ok but an older building they could have issues.  Make sure your local inspectors are reasonable.

Section 8 investments offer pros like guaranteed rent payments from the government, high demand in low-income areas, and long-term tenants, but cons include strict property inspections, potential for higher maintenance due to tenant wear, and bureaucratic delays in approvals or payments.

@Shane Moore I'm not sure why you can't do both at the same time. On a separate note, are you personally connected/invested in the community for a specific reason? Most of my clients look to give back to communities through their real estate development skills and generally have 1 of 3 things involved, 1) They grew up in the community, 2) They still go to church in the area, and 3) They have family members that still live in the area. Do any of these resonate with you?

its a specialty niche no doubt.. those that think its easy and guranteed rent usually end up in a bad place.. those that Micro manage every aspect and are local and know what to expect can make it work..

However one just needs to consider the tenant base of section 8 basically nationwide.. your talking single mothers and multiple children .. those are the toughest situations for the homes for on going maintenance and repairs.  And if does not matter if your section 8 or not but you have small children living in a home your homes are going to take a lot of abuse.. Kids are kids and they bang into things they break things they break window shades they stand on oven doors they spill things etc etc..

Hey @Shane Moore The success (or not) of S8 properties can be highly dependent on your relationship with the housing authority that manages the area. You'll want to know what the FMR (Fair Market Rent) is for your zip code/bedroom count. My clients that have S8 units do a lot of upfront tenant screening, which can reduce the amount of damage/tenant issues. Also, I'd highly recommend checking out Mike Curadossi's, "Section 8 Done Right".

Carlos - congrats on the success so far!

From what I am seeing/hearing, there is room rental demand just about everywhere in the country. Great way to test demand would be to poke around Facebook housing groups in your area to see what rooms are going for and how many people are on there looking for rooms to rent. You can even post a 'tester' listing on FB marketplace/Craigslist/Zillow/furnishedFinder ect to see what demand looks like.

I work with a ton of Coliving investors in Atlanta that operate on the padsplit platform - lot of demand here due to the discount you can rent a room for vs. going out and renting an apartment.

If rents are relatively expensive in Cape Coral - good chance there is a lot of demand for individual room rentals.