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'Section 8' anyone?

1,623 Views | 5 Replies | Last: 14 hrs ago by warreng
evestor1
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I am thinking of making one of my properties into HUD housing.

The limit on 3 bedroom in my area is 2100 / month. Mine is worth 1700 / month on open market.


Does anyone own HUD housing and do the market rents go up or down from open market in your experience?
CS78
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I've done it in the past with a 4-plex. All the work and pains aside, I wouldn't consider it unless you're numbers were way better than that. They'll do stuff to lose their HUD voucher and then you're stuck constantly trying to collect rent or dealing with the eviction process. No matter how hard I worked at it, I always seemed to have one of the four units not producing. So essentially 25% vacancy rate even though they were rarely empty. Luckily, rent was over 3% of purchase price so I still did ok. But I'll never do it again. Expect way more to go into maintenance than a normal property.
Choward4
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I have them and prefer them. Guaranteed rent, can get increased and while some are as CS says, equal amount stay for 2-5 years and a handful for life. It was great when Covid hit to get that guaranteed rent.
dubi
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AG
Quote:

The limit on 3 bedroom in my area is 2100 / month. Mine is worth 1700 / month on open market.

So the federal govt pays rent over market value?
evestor1
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the way i see it yes.

but not in the "easy money" way. my segment of the market is overvalued in their system b/c i emphasize bedrooms and bathrooms over square footage / etc.
warreng
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Once you get approved and inspected it is OK for certain properties. The problem we have allot in Brazos county is the inspections. One guy will come out and give us a list of things to fix. We will fix those things then someone will come back out and give us a new list of things. When we mention those were not on the first list they just say "we must have missed it". Sometimes this happens 3 or 4 times. The HUD dept you have to deal with can be unresponsive and difficult at times.
Warren N. Green www.bcshomebuyer.com warren_n_green@msn.com
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