So you've made the decision to give Section 8 investing a try, under 1 condition, the real estate needs to be close to where you live.
No problem.
By purchasing a real estate property close to where you live, you feel you have the confidence to understand the market. Maybe you have trusted plumbers, or contractors that you feel can help you manage the property. Perhaps you have a trusted real estate broker and property manager all close by to help you make the decision.
Investing in Section 8 housing can be a rewarding endeavor, combining financial returns with the fulfillment of providing affordable housing options. If you're considering venturing into Section 8 real estate investments in your area, this guide will provide you with practical and effective strategies to identify promising opportunities.
- Find Your Voucher Rates: The voucher rates sets your purchasing budget and is how you will use the forecaster tool to better understand what cash flow will go to your bottom line. For example, if in your area the local voucher rate for a 3 bedroom unit is $1500/mon, you will likely be seeking a property that costs $150,000 to meet the 1% rule. Either way, knowing how much you will get paid is the first step. The next steps are to control your costs.
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Research Local Housing Authorities: Start your journey by calling the local housing authorities in your area. It's important to remember that sometimes there is a housing authority for the county, and a separate one for the city that is inside the county. Give them a call and ask them about waiting lists and how many people are there. Talk to them about their processes and timelines. Good questions to ask include:
- How many people are on the waitlist
- How long does it take to set up an inspection
- How much does the PHA pay if utilities are or are not included -
Connect with Real Estate Agents: Now that you know how much you'll get paid, and have an idea about the demand in your area, engage with real estate agents. They often have valuable insights into the local market, crime rate knowledge, rental trends, and the demand for affordable housing. Establishing relationships with these professionals can open doors to exclusive listings and potential investment opportunities (especially off market deals).
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Utilize Online Real Estate Platforms: Leverage online real estate platforms to see what's available. Websites like Zillow, Realtor.com, and HUD's official portal provide filters that allow you to specifically search for your desired property. Set your preferences to match your investment criteria, including location, property type, bedroom count, and budget.
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Network with Property Management Companies: Property management companies often handle Section 8 rentals on behalf of landlords. Networking with these companies can provide you with insights into available properties, market trends, and potential challenges associated with Section 8 investments. Establishing connections with property managers can also streamline the management process once you acquire a Section 8 property. Ask how many Section 8 properties they manage and also ask if they have find and sign the leases for tenants. You can skip this step if you plan to manage the property yourself.
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Attend Local Real Estate Events and Networking Meetings: Participate in local real estate events, seminars, and networking meetings. These gatherings provide an excellent opportunity to meet other investors, real estate professionals, and even local housing authority representatives. Building a network within the real estate community can lead to valuable information about Section 8 housing opportunities in your area.
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Stay Informed about Local Economic and Development Plans: Stay abreast of local economic and development plans that may influence the demand for affordable housing. Government initiatives, urban development projects, and population growth can all impact the potential success of Section 8 investments. Being informed about these factors will help you make strategic investment decisions. In general, we almost never see a government decision that suppresses the profitability of Section 8. Most decisions increase the profitability as most decisions are made to increase the value of the property in the surrounding areas.
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Utilize Social Media and Online Communities: Join online forums, social media groups, and communities focused on real estate investing. Engaging with experienced investors and enthusiasts in these spaces can provide you with firsthand experiences, tips, and recommendations regarding Section 8 housing opportunities in your area.
Finding lucrative Section 8 housing investments in your area requires a proactive and multifaceted approach. By researching local housing authorities, connecting with specialized real estate professionals, utilizing online platforms, networking with property management companies, attending local events, staying informed about development plans, and engaging with online communities, you can position yourself to discover and capitalize on promising Section 8 investment opportunities. Remember, success in Section 8 investing involves a combination of thorough research, networking, and strategic decision-making tailored to your local market conditions.
Lastly, by following the guidance provided in our training materials will almost surely help you find a cash flowing property that meets your financial goals.
