Section 8 Rental Property
I am new to real estate investment. I am considering a section 8 property as my first real estate investment. The property is located in Dallas, TX. Dallas Hoiusing Authority has changed its policy to reduce the funding. There seems to be already effect of this on the property which is only 50% occupied.
Would it be a good idea to invest in section 8 property for a beginer -- considering that it is 50% vacant and DHA has reduced funding?
I suspect you already know the answer to your question.
Unless you have experience and a lot of money to turn around this housing project, I would recommend you pass.
The first rental i bought had a section 8 tenent. I never had any real problems with collecting rent or lower funding. The lowered funding problem does illustrate my biggest concern with section 8...control. As a landlord, you have very little control. Your rental increases are controlled by someone else and eviction can be more difficult. I do get a check on the 1st of the month like clockwork but if you are a good, firm landlord you'll get that anyway. If the cash flow works, go for it. If you can find another property with at least equal cash flow...i'd take the other.