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🗓️ 17 June 2025
⏱️ 11 minutes
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0:00.0 | What have you seen from Section 8? Because that's like a trending thing that, you know, you hear a lot of people talking about. And I mean, you just mentioned it. Like, you're getting great returns on that. I mean, what have you seen as the pros and the cons? Because you're in a lot of these markets where Section 8's probably huge. Section 8 can be good. Usually if someone is saying that it's like one end of the spectrum, either it's like, |
0:23.6 | it's like horrible, it's never going to work, or it's the answer to all your prayers, |
0:27.8 | they're probably both just wrong, you know, there, which is one challenge of just our culture |
0:33.4 | today is like the polarizing. |
0:34.7 | The reality is there's, you live in the gray. |
0:36.9 | Like the, there are some tradeoffs in that rent tenants that come through HUD or are in the Section |
0:43.4 | A program, they are generally harder on the properties. The same way that if you rent to someone for |
0:47.7 | $900 a month is going to be harder on a property than someone who's renting one of the luxury |
0:51.7 | properties that you're selling it. Yep. That's just the |
0:55.0 | thing. The more income someone has, they tend to take on average better care of their stuff. |
0:59.7 | Well, also, too, when it's their money on the line. Like with Section 8, they are just being given |
1:05.3 | it. Right. Yeah. So that's that's one. But the other side is they're not as hard, they're not as bad tenants as people might say they are because most of these people have been on a list for about two years on average. And so, when I was living in Austin, I worked with some inner city kids in on the east side of Austin. 76% of those kids don't know their dad. And so I was working doing some mentoring |
1:28.8 | in that area. And one of the families there, it was a mom and her husband sort of boyfriend, |
1:36.4 | or sort of husband, but not technically, and four kids living in a one apartment, one bedroom |
1:42.0 | apartment, paying $8.50 a month. And then they got on HUD and |
1:46.1 | they got a four bed, two bath and they were coming out of pocket, $100 a month. Do they want to lose |
1:49.5 | that property? No, they really don't want to go back to a one bedroom with six people in it. Yeah. |
1:54.5 | And so they will, they'll do their best to, to take care of it. Now, you know, you get your bad eggs, but even you get your bad eggs |
2:02.9 | with tenants without that. So without HUD. So the nice part about HUD is, now it doesn't work in |
2:09.5 | every area, particularly the nicer areas that are higher property taxes, better. HUD is going to pay less |
2:16.6 | than market average would. |
2:17.9 | Really? |
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