I Continue to Buy and Hold With Section 8 Rental Properties in San Antonio

I hold a lot of San Antonio owner finance properties but in recent years I have been doing more section 8 rentals for San Antonio investment properties.

Some people do not like section 8 rentals because they think they can have more problems with those types of renters. However, I find that generally, using section 8 with the San Antonio Housing Authority works quite well.

Section 8 rental property can work really well for the out of state investor who wants to reduce taxable income and enjoy depreciation and write offs. As much as I like owner financed property, you cannot write off anything or reduce your taxable income with depreciation.

I have been doing section 8 rental properties in San Antonio for several years and I have found there to be many great advantages:

  • You will always get your payment electronically on time. You never have to worry about chasing down rent payments.
  • If the economy goes down, you do not have to worry about the San Antonio renter losing his job. The voucher will always pay their rent.
  • I can often charge more rent to a section 8 tenant.
  • I really love how easy it is to market for section 8 renters. All I have to do is post the San Antonio buy and hold property on the GoSection8.com website and I start to get calls from potential renters.

Of course, it is very important to screen the potential renters carefully. I do background checks and credit checks, and I always verify employment. I want to have potential renters that have a voucher that covers the rent, and I also want them generally to bring in at least $1500 in additional income per month, and I increase that if there are several children in the house.

Last, doing section 8 rental property allows you to leverage your money. You can often do a 20% down loan on a San Antonio investment property, and then do the rehab. Once it is occupied for a few months, you can cash out refinance about 80% of the ARV and use that cash to buy more property. This is a quick way to build capital and buy and hold cash flow.

In short, doing section 8 rentals with San Antonio wholesale property is a really fine way to increase your net worth and cash flow.