Tuesday, September 13, 2005

Section 8?

I am still throwing the deal I wrote about in my previous blog entry against the wall to see if it will stick. My latest thought has me going down the Section 8 path. According to this web site, Fair Market Rents (FMR) for my locale are as follows:

Year   1Br   2Br   3Br   4Br
----  ----  ----  ----  ----
2005   747   912  1240  1435
2006*  658   804  1093  1265

(*) Proposed
So, if I could get a renter in for even $975, I have the potential of going CF positive on this deal. I just found this info, and know very little of Section 8 (aside from the usual horror stories about tenants and the government's strict inpection policies), so I need to do more investigating.

I recall my mortgage broker saying a while back that House #1 could rent for $1200-$1300 on Section 8, but I was leary at the time, since it was my first property. This time around, I'll try to leave my options open more.
Posted by at

1 comment:

Adventures In Money Making said...

I've had section 8 before.

the tenants never paid their portion on time and trashed the place when they left. the government paid they're share on time. this confirms what i had heard from other investors before i got section 8. 80% of them said section 8 tenants are scum.

however the investment was a great one. i had the house for 18 months. it broke even of the cashflow and i sold it for a 75k profit!

check out my blog!

Sep 28, 2005, 5:43:00 PM

Post a Comment

Subscribe to: Post Comments (Atom)