section 8 - Posted by melvin gunter

import · November 29, 2000, 7:25pm

Posted by IB (NJ) on November 30, 2000 at 10:34:16:

Pigs can be found anywhere. My Grandad had a pig in one of his homes that wasn’t sec.8. I think their are pigs everywhere. But everyone will basically move according to his or her own experiences.

import · November 29, 2000, 7:25pm

Posted by melvin gunter on November 29, 2000 at 20:25:42:

would you get involved in section 8? What are the pro’s and con’s

import · November 30, 2000, 11:43pm

Would you believe a 50% return. - Posted by Mark-IL

Posted by Mark-IL on December 01, 2000 at 24:43:21:

I have Sec 8 houses. The best money makers are my 5 bedroom houses. I try to buy houses in the $30,000 price range. They do need a little work around $1000 - $1500 in repairs to pass inspection. I usally put around 15% down on the property as well. With that in mind I get just over $700 a month in rent. After all expenses that go with the property I get just over 300 a month in postive cash flow. Let’s do the math.

30,000 house
minus the 4500 down payment.
equals to 25,500
after payments, taxes, ins. misc expense. are taken out.
Just over a $300.00 postive cash flow.
that equals something like 66%.
Take in account the money invested after the first year will be around 50%.
after that should jump up to 66%.

Is that a good return? Who knows but How many houses like this would it take to quit that JOB (Just over Broke)And do this full time.

I do have other sec 8 houses (smaller bedrooms)But after taking a look at the return on the money it makes sense for me to do Sec 8. The key however is finding good renters. I won’t say that sec 8 is free of it’s head aches. But I am getting my check at the beginning of the month and that I know it will clear with the bank. Many people have different ways to look at real estate. If you want to succeed at any thing in life you need a reason for doing it. The stronger the reason for doing this business the more you will succeed, And the better life will look at. How much money do you need to quit your job and work for yourself. I know I do and I could never go back and work for someone again. I relize it is not easy and there is a price for anything we do. I figure my price is more resonable than someone else telling me what I am worth.

Any way my 2 cents. Just don’t let the nayslayers put you down.

Good Luck

import · November 29, 2000, 7:29pm

Re: section 8 - Posted by Rick

Posted by Rick on November 29, 2000 at 20:29:24:

There are no pros

There are a lot of “Cons” (Usually the tenants) “EX CONS”

They trash the place and you’re stuck!

I’d rather be a panhandler then rent or sell to Section 8

My 2¢

Rick

import · November 29, 2000, 9:38pm

You obviously don’t do sec. 8 - Posted by IB (NJ)

Posted by IB (NJ) on November 29, 2000 at 22:38:46:

do you Rick?

Pros: (if you screen your tenants)

Guaranteed rent paid on time
Damage to property 80% insured (last time I checked)
Rent paid usually 10-20% more than market

Cons:

Apartment must pass inspection
Must fill out a lot of paperwork

I’ve seen a few informative posts here on CRE about Section 8. Search the archive. Many peeps are making a “killing” with sec. 8. And don’t have half the headaches that landlords who don’t have sec.8 experience. It seems as I remember more than a few peeps on this board complain about tenants trashing their place. Funny how none of them mentioned that these tenants were section 8. By the way, you’ll find many of your section 8 are the elderly or handicapped. Most, from the experiences I’ve heard from fellow investors are good people.

import · November 30, 2000, 9:36am

Re: You obviously don’t do sec. 8 - Posted by Mark (SDCA)

Posted by Mark (SDCA) on November 30, 2000 at 10:36:21:

Section 8 no longer insures against damage. They have gone to a straight security deposit.

There ARE some other cons:
Annual inspections (VERY nit picky).
Having to deal with the government bureacracy (a REAL headache if there is ever a problem with the check).
Tenants having the “entitlement mentality”.
Inability to attract decent Section 8 tenants (thereby negating any benefit of the above market rent).

Section 8 has been a big disappointment for me.

Finally, I would think long and hard before renting a SFR to a Section 8 tenant. I can attract a better class of tenant for a house. An apartment, yes.

Regards,

Mark

import · November 30, 2000, 5:25am

Re: You obviously don’t do sec. 8 - Posted by BR

Posted by BR on November 30, 2000 at 06:25:47:

IB,

Not all areas get 10-20% more rent for renting to HUD. In my area I can get more by NOT using SEC 8. Mine are fully occupied 99% of the time and I rarely lose rent. When I do, I know how to collect. I have less headaches than I did when I used SEC 8 because of tenant mentality. The inspections were no problem at all. In fact when you know what they look for (it’s in the Landlord Package) it’s easy to pass inspections. I would intentionally leave a cracked switch plate or two just for them to ‘find something’ to flag (replacement covers in my back pocket of course). If you are in an area that has a large elderly or handicapped population, consider yourself lucky. They do make good tenants, but run of the mill SEC 8 tenants are definitely PIGS. Been There, Done That, Not Going Back!