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Old 02-02-2010, 04:55 PM
 
Location: Marietta, GA
857 posts, read 3,243,452 times
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I have switched from the stock market to the Real Estate market because of all of the bargains out there. I am buying foreclosures to fix up and either "flip" or rent. I've had plenty of rental properties over the years but I have never rented to a Section 8 tenant and I am wondering, if any of you have, was it a good or bad idea?
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Old 02-02-2010, 08:49 PM
 
14,078 posts, read 26,021,592 times
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Like every rental... the people you rent to can either make or break you... Section 8 is no different.

Some people don't screen tenants as thoroughly with Section 8 since part of the rent is paid by a third party... treat Section 8 tenants just like any other.

The only difference is part of the rent is subsidized.

As for as the property goes... Section 8 units must pass HQS (Housing Quality Standards) not really very difficult... but more encompassing than renting non-section 8... things like each room must have a screened window or door, generally the appliances must be in the unit and working at the time of inspection even if the tenant is supplying them, etc...

Beware the amount of the subsidy is subject to change... I've had tenants start out paying less than $30 a month eventually pay over a $1000 when they finished school and got permanent employment.

Do yourself a favor and make sure the outside of your property is kept up... even if it means you do it or hire a gardener... nothing makes people hostile quicker than a un-kept Section 8 property down the street.

Go to the local Housing Authority and pick-up an Owner's Information Packet... it will have everything you need to get started.
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Old 02-03-2010, 09:06 PM
 
704 posts, read 1,265,918 times
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I inheirited a Section 8 tenant in a 2-family building I purchased a few years ago. His rent was $600 per month, with his share of that being $70 per month. He was a middle aged guy on some sort of social security disability payments. Nice guy, kept the place in decent shape, but he never paid his $75 share of the rent, ever. I didn't evict him because a guaranteed $530 per month was still pretty decent rent for the apartment. I just raised the rent each year to the maximum extent that HUD would allow.

The local HUD people made annual inspections on the property, and usually found little nickel and dime items that needed fixing - loose handrails, vinyl flooring tiles peeling up, etc.
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Old 02-06-2010, 06:58 AM
 
69 posts, read 210,519 times
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Depending on where you are buying section 8 tenants may be a blessing. If your investment properties are in a mid to low demand area then section 8 tenants could be the way to go with guaranteed rent for you. If, however, you are in a high demand location, such as close to a university, a hospital, a major company where renting demand would be high you would be better off going with a private funded tenant. With real estate location is key. You buy in the best location you can afford.
Being a government subsidized program, there is some paperwork involved with section 8 housing and the inspections can be "bothersome" depending on the type of inspector that comes and takes a look on a yearly basis. We had one elderly section 8 couple in a property and the inspector came 3 times over nit picky items, that really had nothing to do with the living quality of the apartment and they require that you be there to meet them each time. If you do not do the fix and do repairs they want, they will not pay their portion of the rent. this was on an apartment where the market was $1900 and the rent received from this apartment was about $1600 The rent is usually under what the market can bear.
Like for everyone else looking at your property for rent you need to screen carefully. Check former landlords(though some may lie to get rid of a bothersome tenant) check credit, and employment.
And like everyone else there are some good and bad in section 8. some really do have reasons for the subsidy, others questionable, some abide by the rules, others abuse them. There are some conceptions out there about section 8 housing, some deserved, some not, you just have to be careful who you put into your properties. Know your laws and rights as a landlord also. Every state is different but in certain states tenant rights are very powerful, even to the point of getting free legal representation.
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Old 02-11-2010, 01:51 PM
 
4,242 posts, read 234,089 times
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I have been a landlord for a few years ; probably over 8. Our experience with section 8 ; I would never ever do it again.

First section 8 tenant was ok until her boyfriend moved out and she couldnt afford her part of the rent ; I think it was $600. Then we had to get her evicted and she refused to move out on the day she was supposed to ; she also left lots of garbage.

Second section 8 tenant ; where do I begin. She has never paid her portion of the rent on time and right now she hasnt paid it since sept. It is $120 a month. That is just hte beginning. The only thing that is saving her is the fact that I am almost guaranteed 95% of the rent and that the check wont bounce. In the past two months she has cost me about $900 ; the cesspool had to be pumped, it was pumped last year also, the faucets were broken by her kids, she didnt have the money to buy new ones, the bath pipes(2 bathrooms) had to be snaked as there was so much hair in the pipes that they were clogged. She ran out of oil and couldnt be bothered paying $20 to get the furnace restarted ; instead called me and the oil company had to come specially at the tune of $105.
There are some good section 8 tenants, but I havent come across them yet.
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Old 07-22-2011, 06:34 AM
 
437 posts, read 555,587 times
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okay non sec 8 tenets would to the same to bath drains with hair. sounds like a drain issue
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Old 07-22-2011, 04:18 PM
 
29,820 posts, read 26,713,561 times
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the trifecta of divorce,job loss and illness eventually hits just about every landlord if your doing it long enough.

it can make you never want to do it again,ever.
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Old 07-22-2011, 10:20 PM
 
455 posts, read 630,463 times
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Quote:
Originally Posted by JohnZ963 View Post
I inheirited a Section 8 tenant in a 2-family building I purchased a few years ago. His rent was $600 per month, with his share of that being $70 per month. He was a middle aged guy on some sort of social security disability payments. Nice guy, kept the place in decent shape, but he never paid his $75 share of the rent, ever. I didn't evict him because a guaranteed $530 per month was still pretty decent rent for the apartment. I just raised the rent each year to the maximum extent that HUD would allow.

The local HUD people made annual inspections on the property, and usually found little nickel and dime items that needed fixing - loose handrails, vinyl flooring tiles peeling up, etc.
Love tenants like that. As long as HUD makes the payments, its all good.
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Old 07-25-2011, 10:22 PM
 
12,673 posts, read 13,428,463 times
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Stock Market > Real Estate.
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Old 07-25-2011, 11:29 PM
 
57,490 posts, read 29,106,699 times
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Been there, done that. Left the sec 8 tenants for NNN investments. A lot less headaches
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