anybody here has section 8 rental properties?

I know a house about 2 blocks away that rents to section 8 people and it's been turned into a shithole. The house is on a really great block and the neighbors hate the tenants and now the owner who cares more about a quick profit than the actual house + neighborhood.

For that sentiment alone, I urge you not to do this unless you truly vet the tenants.

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But I wonder about potential nightmares that might happen with section 8 tenants. Anyone has experiences and would like to share?

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If you put 42K into the house, and are collecting 1K a month, unless the tenants completely destroy the property, you will be fine. And even if they do, get good insurance.

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If you put 42K into the house, and are collecting 1K a month, unless the tenants completely destroy the property,

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Agreed. But I think the problem with Sec. 8, this that 9 times of out 10, the property does get destroyed to some extent. I have a neighbor that owned 10-12 of them at one time and after a few years, sold them all in a package deal. He got tired of painting, re-flooring, fixing holes, etc. everytime someone moved out.

He told me that he walked into one of his units and the tenants were dismantling small engines to sell at pawn shops. Oil was everywhere. I think that is what made him finally pull out.

Also, I think the $1K a month figure is pretty high. Most of these low income/sec 8 deals are going for closer to $500/month around where I am.

I have a retired friend who does and from what he says typically he builds an apartment/duplex rents it, then in six months it has to be entirely renovated again new appliances, toilets, sheet rocked, painted the whole deal when the tenants bolt.

I don't need that hassle, but he has a crew that it keeps busy year round.

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The house is on a really great block and the neighbors hate the tenants and now the owner who cares more about a quick profit than the actual house + neighborhood.

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Are you suggesting that instead of increasing the rent to attract a higher class tenant and creating larger profit he would rather charge less to obtain Section 8 tenants?

Maybe your neighborhood is all that great.

100 years ago we would run you and your friend out of town. If you were allowed to live.

It takes a certain personality to deal with the average tenant you get in section 8 properties and deal with the all the aspects that come along with that.

Not for me.

Nope, nope, and hell no.

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But I wonder about potential nightmares that might happen with section 8 tenants. Anyone has experiences and would like to share?

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I've had no MAJOR problems with past section 8 tenants. You NEED to know WTF you are doing though if you want to deal with these tenants.

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clean up and minor fix up/maintenance, patching a few floor spots/all spots between tenants is NOT destroying a property.

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I would consider it not just normal wear and tear over a six month period. Having to re-carpet, paint, replace broken tiles on EVERY turn around is a lot of work/money.

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Just tell the kiddos to play in index funds while we get those 25% returns

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I'm not doubting you, but I wonder what your secret is. If you are renting to Section 8 and having to do as many repairs as other say would need to be done, and you are limited in what you are charging for rent, I'm suspicious of a 25 percent return.

Unless you are including what you think is the value increase, and I could only see that if it's in an area where you are soon to be bought out due to gentrification.