Anyone ever owned Section 8 Housing?

[UK2K]

Recently I've been in an investment kind of mood. We're (me and a buddy of mine) are looking at two condos to rent out in Gulf Shores and Charleston. That much, for now, we agree on...

What we don't agree on is whether or not to invest in section 8 housing. I knew a guy who had several section 8 homes, and he said it was awesome, but also a nightmare. I don't want to deal with the shit. Cleaning up after people who don't give a **** and dealing with the shittiest of shitty people. But...

He also said its easy once you're in. The place has a lot of requirements for it to be eligible for section 8, but once it's good to go you get regular, steady money. Yeah you have to clean up people's shit, but the government pays on time, like clockwork.

He is wanting to buy a few places and set them up for section 8 housing. I am more interested in continuing to buy rental properties near the beach (which double as vacation properties in my eyes).

So has anyone tried the whole section 8 thing?

[ALBballer]

Being a landlord is tough work and I personally wouldn't want to deal with tenants from some of the lowest economic class. It sounds snobbish and I admit I have no experience with section 8 housing but I have heard some crazy stories involving crappy tenants and some of them were well of financially and I have seen first hand what scumbag tenants can do and have seen the scammer types that know the laws well and have used them to blackmail the landlord because eviction is too much work. Just remember when anything goes down you are responsible and will be called upon for any issues.

With that said higher risks higher returns so if the money was right I would consider it. I guess steady payment is a positive but you might deal with a tenants that will trash your place.

[FillJackson]

Make sure to get prices on flood insurance

[macmac]

I have a friend who owns a bunch and its the best investment he's made. He has a guy he pays well to manage all the properties and clean up, so he literally does nothing but collect. Once you own a bunch you can afford a loyal manager like that as it won't cut into too much of your profits

[senelcoolidge]

Just a story. In one of my past jobs I got the chance to go into different neighborhoods. In the ghetto I got a chance to go into brand new section 8 housing. The apartments were of high quality. They were nicer than my place that I paid a grand a month to live in at the time. In these brand new apartments you had ghetto trash living there, people hanging around at 12 pm doing nothing...apparently they had no jobs or didn't care to work. Liquor bottles on the floor. People not being productive with their lives. I knew this place was going to be run down in no time. I got a chance to go back several months later and you could see it. Trash on the floor. Old broken down cars. People lounging around. The place looked like it aged years in just a few months.

[longtime lurker]

Just a story. In one of my past jobs I got the chance to go into different neighborhoods. In the ghetto I got a chance to go into brand new section 8 housing. The apartments were of high quality. They were nicer than my place that I paid a grand a month to live in at the time. In these brand new apartments you had ghetto trash living there, people hanging around at 12 pm doing nothing...apparently they had no jobs or didn't care to work. Liquor bottles on the floor. People not being productive with their lives. I knew this place was going to be run down in no time. I got a chance to go back several months later and you could see it. Trash on the floor. Old broken down cars. People lounging around. The place looked like it aged years in just a few months.

Holy shit you're a horrible poster.

[sammichoffate]

Holy shit you're a horrible poster.:oldlol:

[UK2K]

I have a friend who owns a bunch and its the best investment he's made. He has a guy he pays well to manage all the properties and clean up, so he literally does nothing but collect. Once you own a bunch you can afford a loyal manager like that as it won't cut into too much of your profits
That's was my thought too.

Get me some property management company to take care of everything.

You seem to be doing well for yourself. My question is, why doesn't everybody do the same? Barring the initial investment, and the time it takes to manage (which can be negated with a property manager)... what's the catch?

And, knowing what you know, do you think it's wiser to invest in rental condos on beachfront property, or go the cheaper route and pick up a few houses and get them qualified for section 8?

[highwhey]

Is section 8 housing subsidized by the government?

You should be golden if you can find a good cleaner. Pro-tip, find a good professional cleaner, one good cleaner can do the work of 2-3 people. Search for an individual who has done commercial cleaning, they're infinitely better than a residential cleaner.

[UK2K]

Just a story. In one of my past jobs I got the chance to go into different neighborhoods. In the ghetto I got a chance to go into brand new section 8 housing. The apartments were of high quality. They were nicer than my place that I paid a grand a month to live in at the time. In these brand new apartments you had ghetto trash living there, people hanging around at 12 pm doing nothing...apparently they had no jobs or didn't care to work. Liquor bottles on the floor. People not being productive with their lives. I knew this place was going to be run down in no time. I got a chance to go back several months later and you could see it. Trash on the floor. Old broken down cars. People lounging around. The place looked like it aged years in just a few months.
I've never seen the aftermath, but I can attest to your 'nicer then where I live' section 8 apartments.

When I first moved to indy, I was looking for apartments downtown. I found super nice ones, hardwood floor, marble counters, new appliances. When I went to apply, I found out that I made too much money and didn't qualify...

[BigNBAfan]

I dont like dealing with low class people but I do have a few properties in CA that i rent out. I pay property manager half the first months rent and 100/month after that for each renewed lease. Trick to being a good owner is understanding where to delegate power. Let people who work with renters do it... as long as your mortgage and taxes are covered everything will be fine.

[DukeDelonte13]

first off you gotta be handy.


Also a lotta landords make stupid decisions and just don't put enough time into their rentals.

You are allowed to regularly inspect the premises with notice to the tenant!!

Most just don't check on the interior of their properties often to keep up with the damage/cleanliness. Doesn't matter if it's section 8 or not, most tenants straight up destroy homes w/ pests, pets, mold, etc.


Don't think of it as a turn-key operation, if you are involved and mind your p's and q's, and you CAREFULY screen who you rent to rather than just rent to the first junkie scammer that comes calls on the place, you can have a real successful business.

[macmac]

That's was my thought too.

Get me some property management company to take care of everything.

You seem to be doing well for yourself. My question is, why doesn't everybody do the same? Barring the initial investment, and the time it takes to manage (which can be negated with a property manager)... what's the catch?

And, knowing what you know, do you think it's wiser to invest in rental condos on beachfront property, or go the cheaper route and pick up a few houses and get them qualified for section 8?

I think section 8 has more growth opportunity, especially when starting out. You can expand quicker. Not to mention beachfront condos often have expensive condo fees, even if they're not high they might kick in a few years later so you have to be careful with that.

[Labissiere]

I've lived in an apartment complex that was part section 8 housing. My apartment was not section 8, but people living near me were in them. Had to call 911 a few times.

[UK2K]

I think section 8 has more growth opportunity, especially when starting out. You can expand quicker. Not to mention beachfront condos often have expensive condo fees, even if they're not high they might kick in a few years later so you have to be careful with that.

Dude I am going in on this with said the same thing...

[Thorpesaurous]

I have a cousin with a house that he converted into a four one bedroom apartment setup. The neighborhood is okay, and most importantly it's near a major employer. He gets I believe 800 bucks a month for each apartment. He has had Section 8 in there, and they paid less. I want to say low 700s. It was a number the state established, and it was oddly specific, like 716.54 or something. Anyway, he did say it worked will for him. The money was automatic. Something the other renters weren't always good on. He got lucky for the most part and had good renters, but he did wind up with girl who had a pretty bad drug problem and wound up having to evict her, however, she wasn't the section 8 renter. Basically he said it the thing was, the market he was renting too wasn't going to get him super high end renters anyway. Weather they were state or not, it was a bit of crapshoot if you got just a tough luck hard working case, or someone who was just limited on what they were capable of doing for money, or someone who was just a scumbag. And he knew he could go to the state to help with eviction if it really warranted it, but it would have to be severe.


I also know a guy who works as a maintenance guy for the town who that houses a lot of public housing people. Again, some are great, some are horrible. But they've been instructed that problems should go upstairs where they'll forward them to the housing department, which is an easier solution than having to deal with getting a lawyer to deal with a real eviction.