Investing in Section 8 Housing - Because Everyone Needs a Place to Live
Section 8 housing is also known as HUD housing, and is designed for low-income families and individuals who need assistance with paying for their living situation.
Investing in Section 8 housing is something that people consider because it is a guaranteed source of income.
While many people shy away from Section 8 because of the government rules and regulations, it can actually be a much more solid investment than people realize.
After all, people are given housing vouchers for their living expenses that will cover either all or most of the costs of their dwelling, and that money is sent directly to the landlord every single month.
Sure, you have to deal with the headaches of keeping your property up to snuff at all times, but it really isn't that difficult to meet the standards of the government if you are a responsible landlord and investor.
It makes sense to keep your property in good physical and operational condition for your own sake, let alone the sake of whoever lives there.
With investing in Section 8 housing, you can find many different benefits as a landlord or investor.
Some of the best benefits of investing in Section 8 housing include: -Guaranteed income because the government mails you the check every month -Free advertising from the local housing authority because you accept Section 8 -Lower interest rates for loans on the property that you are investing in, and especially if you get government loans to purchase the property -Fewer repair expenses because most blue collar tenants (which are the majority of Section 8 tenants) will do their own small repairs without asking for the landlord's assistance.
-Government funds to renovate or rehab properties because of your acceptance Of course, there are some disadvantages to think about when you are considering investing in Section 8 housing, as well.
For example, some tenants will have a certain sense of 'entitlement' or not take care of their property because they have nothing that you can take if they don't keep things up.
You also still have to screen tenants carefully because the government truly only checks for financial need when approving people for Section 8 housing vouchers.
You might get longer leases and your tenants might be the best ones that you've ever had, but there is a big risk involved with this type of investment if you don't check everything out and make sure that you know exactly what you are doing.
Investing in Section 8 housing is something that people consider because it is a guaranteed source of income.
While many people shy away from Section 8 because of the government rules and regulations, it can actually be a much more solid investment than people realize.
After all, people are given housing vouchers for their living expenses that will cover either all or most of the costs of their dwelling, and that money is sent directly to the landlord every single month.
Sure, you have to deal with the headaches of keeping your property up to snuff at all times, but it really isn't that difficult to meet the standards of the government if you are a responsible landlord and investor.
It makes sense to keep your property in good physical and operational condition for your own sake, let alone the sake of whoever lives there.
With investing in Section 8 housing, you can find many different benefits as a landlord or investor.
Some of the best benefits of investing in Section 8 housing include: -Guaranteed income because the government mails you the check every month -Free advertising from the local housing authority because you accept Section 8 -Lower interest rates for loans on the property that you are investing in, and especially if you get government loans to purchase the property -Fewer repair expenses because most blue collar tenants (which are the majority of Section 8 tenants) will do their own small repairs without asking for the landlord's assistance.
-Government funds to renovate or rehab properties because of your acceptance Of course, there are some disadvantages to think about when you are considering investing in Section 8 housing, as well.
For example, some tenants will have a certain sense of 'entitlement' or not take care of their property because they have nothing that you can take if they don't keep things up.
You also still have to screen tenants carefully because the government truly only checks for financial need when approving people for Section 8 housing vouchers.
You might get longer leases and your tenants might be the best ones that you've ever had, but there is a big risk involved with this type of investment if you don't check everything out and make sure that you know exactly what you are doing.