Pros
- Consistent and on-time income, sometimes higher than market
- Will always have interested tenants, often staying longer than market ones
- Useful if investing in the path of growth
- Fannie/Freddie will get you discounts on financing
- Can often avoid taxes if using the HUD program.
Cons
- Stereotypically, lower income tenants are rougher on properties - section 8 or not this is indicative of C/D class neighborhoods. Screening is very important
- They will make you fix things and add things to be compliant which can be obnoxious
Strategy
Use section 8 until the neighborhood redevelops
Member Notes
