On this episode of The Most Dwanderful Real Estate Podcast Ever, the topic is Section 8 rentals. Many people don’t even consider having Section 8 tenants because they don’t want to be involved with “those people.” What they don’t realize is that people who use the program as it is intended are legitimately down on their luck and trying to support their children the best way they know how while they try to improve their situation. Dwan has a heart for these families because she really wants to help them get back on their feet with the support they need.
From a landlord perspective, Section 8 is the most consistent income you can ask for. The government is never late on payments, and because there is such demand for Section 8 housing, it is unlikely that you will have a vacant property for more than a few weeks. Considering all of the money that the government takes from you every year in taxes, it is also nice for them to essentially pay off your rentals for you with very little effort on your part. You will, of course, interview the potential tenants and do the unannounced visit to their current living situation, and you’ll set clear expectations when each family moves in. Dwan has never had an issue with her Section 8 tenants because of these practices.
If you haven’t heard, Dwan has dropped the fee to join the Dwanderful.com Membership Site, so now you have access to the document library and the chat box for FREE!
Time Stamped Show Notes
- 2:39 – Check out Dwan’s new purple hair!
- 3:49 – How Dwan and Bill eat healthy while on the road.
- 5:30 – Dwan checks in with you about how your week has been.
- 7:21 – Dwan is about to have another grandbaby!
- 7:49 – If you are interested in coming to any of Dwan and Bill’s weekend seminars, check the schedule on Dwanderful.com.
- 9:05 – While Dwan was in Iowa, she opened the antique mall, an events center, and a studio. She was eating well and exercising a lot, so she had a lot of physical and creative energy flowing. She and Bill just purchased their 8th building in Clinton, which they got for $20,000.
- 15:09 – This episode is about Section 8 housing, which a lot of people are scared of, but Dwan will tell you everything you need to know and about why she loves it.
- 17:05 – In order to qualify for Section 8, which is a government subsidized rent program, they have to meet certain income criteria. The program is designed for single parents with lots of children – most of Dwan’s tenants have been single moms with 4-6 kids. While the kids are at school or daycare, the parent goes to college, and with the assistance of the government, they are able to put away money into savings for the future down payment on a house and they are able to get their new life started.
- 19:55 – There are, of course, people who mooch off of the system, usually because of a generational cycle they can’t seem to break.
- 22:36 – The government takes the average rent for your county and gives qualified individuals vouchers to find housing for that amount. As long as the voucher amount covers the landlord’s mortgage payment, the landlord can interview and accept the tenant.
- 25:22 – When you have a property that you want to be on the Section 8 list, you just have to alert the county’s housing authority. You can then interview the potential tenants, and you should always do the unannounced visit that Dwan talked about a few episodes ago.
- 27:37 – The great thing about this arrangement with the government is that you will always get paid in full on time – unlike some other tenants you might have.
- 28:20 – Dwan always uses the government lease and a separate lease that outlines what repairs the tenant will pay for.
- 29:03 – GREAT NEWS! The Dwanderful.com membership site is now FREE for everyone! Dwan wants to make all of this knowledge accessible to anyone who is looking to become wealthy through real estate investing!
- 31:22 – These Section 8 leases are renewable as long as you and the tenant want them to be, and you just have to communicate with the housing authority when they are leaving, and you are ready for a new tenant. This is a great way to have the government pay off all of your rentals.
- 33:17 – If you submit a formal complaint about a tenant, they are kicked out of the Section 8 program and cannot get a new voucher for 5 years.
- 33:54 – This is personal for Dwan because she was a single mother in a tough financial position 30 years ago this month. She wants to help other single moms get out of their situation and get on solid footing in a good life.
- 37:26 – You have the power to dictate terms to your tenants so they don’t trash your property.
- 40:45 – People sometimes mistake kindness for weakness.
- 41:11 – Consider Section 8 for yourself.
- 42:18 – It is probably best to have a 3 bedroom/2 bathroom house for Section 8 purposes, but call your local housing authority to see what they have need for.
- 44:33 – Your assignment after this episode is to go to the Dwanderful.com site and download the rental lease document.