Buying Multi family homes and renting to HUD tenants

There are many Multi family homes for sale under $200,000 in large US cities. There are many investors buying such great income producing homes in a number of states. These properties which are can be in solid blue collar neighbourhoods, which are great for renting to section 8 tenants.

Investors are willing to buy in these neighborhoods because the properties are lower cost to acquire and can deliver a higher rate of return. You can find deals for properties in these neighborhoods that need some repairs to make them rent ready. Buying these properties and fixing them up can save you money and can provide you with good cash flow each month after it’s fixed up with government subsidized HUD tenants.

Choosing a neighbourhood with a balance of good rent and lower house prices and if the property is well maintained you may be able to ensure long-term HUD UHHstenants. We have found that often blue collar tenants may prioritise neighborhoods based on distance from work and rental amount over schools and crime rate. Blue collar neighborhoods always have a large rental population, with this further exacerbated by many families losing their homes due to financial difficulties and seeking quality rental properties instead.

Here are four reasons to consider renting to HUD tenants (formally known as Section 8).

1. You will be receiving consistent rent payment by the Federal Government. The tenants apply for the program, and if they meet certain requirements, they are granted a housing voucher from the government. Once the rental unit has been approved and inspected by the local Public Housing Authority, you can sign a lease with the tenant. The Public Housing Authority is responsible for paying the tenant’s housing voucher directly to the landlord each month. Renting to HUD tenants, therefore provides the advantage of receiving the rental payment consistently each month.
2. A tenant maybe responsible for a small percentage of the rent and must pay this portion directly to you. Section 8 tenants know that any violation of the terms of the lease agreement, including paying rent, could result in the loss of their Section 8 voucher. Therefore, they have a strong incentive to pay their portion of the rent each month.
3. If you decide to make your property Section 8 friendly, a second advantage to consider is the unique marketing opportunities available to you, with marketing opportunities available both online and in person. You should also check with your local Public Housing Authority. Many local offices have their own online sites and allow you to place flyers in their offices where you can also list your rental.
4. There is high demand for Section 8 vouchers across the country. Many areas have wait lists thousands of people long to be on the program. Therefore, you do not have to worry that there will be a shortage of Section 8 tenants.
5. In order to qualify for Section 8 housing, tenants must meet certain requirements. The Section 8 office focuses their screening on the tenant’s income level. However, they often uncover other issues while conducting this income screening, such as a criminal history. Public Housing Authorities will not provide Housing Choice Vouchers to those who have been evicted due to drug related activities within the last three years.

When choosing Multi family homes for sale you will be well advised to choose a good neighbourhood with will be suitable for HUD tenants and provides a good balance between lower property prices and higher rental levels, to provide a good return on investment.