Thinking of becoming a slum lord. Anybody rent to HUD/Section 8 people?

[lxskllr]

Sounds like you're forgetting about maintenance. Property purchase is only the first step. It'll likely be far more maintenance intensive due to age, and poor care. Add people that don't give a shit, and it can really eat into the bottom line. Lots of headaches, for small profit. I wouldn't do it...

 

[BlahBlahYouToo]

My brother did maintenance for a guy that owned section 8 housing. He basicaly had more money than he could spend. Was traveling the world 9 or 10 months a year.

Each tennant had to pony up $25 a month, the rest was paid by the gov, and probably a ridiculous rate for what was a basically a cinder block cell with plumbing.

When the 5 year welfare limit kicked in and they actually had to evict people because the govt wasn't going to be footing the bill anymore, people flipped out. They started destroying the place, shitting on floors, smashing all the windows, tub, toilet, pissing in the halls.

Funny though that they always complained about how the govt wasn't helping them enough, but it was noting but pimped out cars with $500 rims in the parking lot.

$500 for rims are cheap. unless you mean each.

 

[MotF Bane]

My brother did maintenance for a guy that owned section 8 housing. He basicaly had more money than he could spend. Was traveling the world 9 or 10 months a year.

Each tennant had to pony up $25 a month, the rest was paid by the gov, and probably a ridiculous rate for what was a basically a cinder block cell with plumbing.

When the 5 year welfare limit kicked in and they actually had to evict people because the govt wasn't going to be footing the bill anymore, people flipped out. They started destroying the place, shitting on floors, smashing all the windows, tub, toilet, pissing in the halls.

Funny though that they always complained about how the govt wasn't helping them enough, but it was noting but pimped out cars with $500 rims in the parking lot.

Ladies and gentlemen, your tax dollars at waste.

 

[Gibson486]

DO NOT DO IT! My mother did this. It is nothing buy headaches. Remember, you own the place, so issues that occur are your problem now. Drugs, your problem if it happens on your property.

For every 1 good tenant you get, you will get 5 bad ones.

My mom is desperately trying to unload her propery. They will not even let her foreclose on it. If she stops payment, they just say, "pay up or...we'll take your pr....oh wait, this place sucks, no just pay when you have the chance because we'll lose money if we just take it".

 

[NetWareHead]

I'd stick with standard tenants and discriminate heavily.

x1000

Discriminate and find a legal reason as your "official" reason for disqualifying people.

 

[NetWareHead]

What you are considering is not for the faint of heart. The types of people you are going to be renting to have little incentive to maintain your property or leave it in even faie condition when they vacate.

This is so true. Landlords have it bad enough with crappy non sec 8 tenants. The type of people that sec 8 usually attracts are scum 80% of the time and will be nothing but headaches for you. Not saying it can't be done but from the tone of your post, it sounds like this is your first time I'm assuming? Get your feet wet with easier non sec 8 prospects. BTW, if you do rent to sec 8 ppl, having legal representation is a must. With regular tenants you can get away with consulting a lawyer as the need arises but most sec 8 landlords I know are forced to make regular use of lawyers due to the nature of the tenants.

 

[ichy]

The easiest way to landlord is to get relatively nice properties in decent areas and rent to the sorts of people who have real jobs, obey the law and care about their credit scores. These types of properties will require more start-up capital to buy and they won't be as lucrative, but they're probably the easiest way to get into the business. Once you know more about landlording you can start thinking about crappier/higher profit tenants.

 

[ThePresence]

One of the building I used to manage was a HUD property. It's a huge PITA. You have to constantly inspect tenants apts to ensure that their apartment still meets HUD standards. They destroy the apts really quick. Then they file complaints with HUD, HUD comes and inspects and pulls your funding,. Happens all the time.

 

[PingSpike]

I believe you get around the "them trashing the place" problem by just leaving the place trashed. And then you charge an onerous amount of rent for a place that is a barely habitable dump and you still get the money because the government pays it. They probably won't complain either since it would bring attention to their grow operation or meth lab.

Maybe this only applies to the 400 year old crap holes that still seem to get rented some how around here LOL.

 

[ThePresence]

I believe you get around the "them trashing the place" problem by just leaving the place trashed. And then you charge an onerous amount of rent for a place that is a barely habitable dump and you still get the money because the government pays it. They probably won't complain either since it would bring attention to their grow operation or meth lab.

Maybe this only applies to the 400 year old crap holes that still seem to get rented some how around here LOL.

One HUD inspection and you're toast. They will pull your funding and your mortgage will be way more than any rent you might get.

 

[El Guaraguao]

Me thinks the only people who become successful slum lords are those who grew up in it. They know what to expect and how to deal with the people.

 

[PingSpike]

One HUD inspection and you're toast. They will pull your funding and your mortgage will be way more than any rent you might get.

I'm not sure why anyone would do it under those rules. I have to assume that in practice that doesn't happen much or something, or like I said they have a grow operation and don't want any government types in their place.

Seriously, the housing stock around here is old as dirt and it sort of shocks me that its even legal to rent this stuff to people. But I guess college kids will rent almost anything. I once saw an apartment that appeared to count a fold down ironing board as a kitchen counter and you clearly needed to put your feet in the bath tub if you sat on the toilet. I guess this probably wasn't section 8 though...maybe section 8 is where all the nice buildings are, screwing us all again!

 

[kranky]

Getting started as a landlord by going with Sec 8 tenants is like learning how to hit a baseball by going up against Felix Hernandez. It's theoretically possible that you might do all right, but it's astronomically more likely you'll be overmatched.

At least renting to college kids you can evict them if necessary, insist on a huge damage deposit (you'll need it), and you have the chance that their parents will cover them if they can't pay the rent.

 

[ThePresence]

I'm not sure why anyone would do it under those rules. I have to assume that in practice that doesn't happen much or something, or like I said they have a grow operation and don't want any government types in their place.

Seriously, the housing stock around here is old as dirt and it sort of shocks me that its even legal to rent this stuff to people. But I guess college kids will rent almost anything. I once saw an apartment that appeared to count a fold down ironing board as a kitchen counter and you clearly needed to put your feet in the bath tub if you sat on the toilet. I guess this probably wasn't section 8 though...maybe section 8 is where all the nice buildings are, screwing us all again!

College kids are generally not HUD housing and play under significantly different rules. HUD can inspect on short notice. They give you a list of violations which you have a time period to correct before re-inspection. If you are not compliant after re-inspection you can get your funding reviewed. Keep in mind, any tenant who doesn't like you can always do whatever damage he wants without you knowing. Of course you can appeal but it's a long, lengthy and expensive process. In the meantime you are not getting rent checks.

 

[highland145]

Stay the F away. Owned 2 duplexes, section 8. PITA doesn't begin to describe it.

Tenant, "My toilet be backing up."
Me, "Have you or your kids put anything in them that you shouldn't?"
Tenant, "No. 'Course not."

Several hours of my time, snake the toilet, pull it up, "Oh, lookie. The flange is broken.", fix broken flange, looks to be doing fine and found nothing.

Hour later: "My toilet be backing up."
Me, "Hold it til I can get the plumper out there."

Plumber (my bro), "You know you really should tell your tenant not to put feminine hygiene products down the toilet. Clogs up the diffuser on the septic tank."

Tampons ruined my Saturday and cost me a service call. They have ruined Saturdays before but never quite like this.

 

[CAW!]

My brother did maintenance for a guy that owned section 8 housing. He basicaly had more money than he could spend. Was traveling the world 9 or 10 months a year.

Each tennant had to pony up $25 a month, the rest was paid by the gov, and probably a ridiculous rate for what was a basically a cinder block cell with plumbing.

When the 5 year welfare limit kicked in and they actually had to evict people because the govt wasn't going to be footing the bill anymore, people flipped out. They started destroying the place, shitting on floors, smashing all the windows, tub, toilet, pissing in the halls.

Funny though that they always complained about how the govt wasn't helping them enough, but it was noting but pimped out cars with $500 rims in the parking lot.

Section 8 is the way to go. NOT HUD!!

 

[spacelord]

A friend has been a section 8 slumlord for many years. I'd say it's paid the bills quite well for him. He does deal with some shaky tenants and situations. He packs heat when he visits many of the neighborhoods where the homes are. its unfortunate, but it goes with the territory.

 

[DayLaPaul]

You can't be a slumlord and rent to Section 8 renters. It's just not possible. They go over the place with a fine tooth comb and nitpick over every little thing before it will pass inspection.

"No window screen in bathroom window." "Gap in the doorway is too wide." "Linoleum in the storage shed is peeling."

 

[highland145]

You can't be a slumlord and rent to Section 8 renters. It's just not possible. They go over the place with a fine tooth comb and nitpick over every little thing before it will pass inspection.

"No window screen in bathroom window." "Gap in the doorway is too wide." "Linoleum in the storage shed is peeling."

this too.