Reader, wouldn't be nice to have guaranteed rent payments on the first of the month?!
This week, we want to address a very common fear for aspiring investors. What if my tenant stops paying the rent?…
Pssst... make sure to stick to the end for a freebie 🤗
How to Guarantee Your Tenant Pays the Rent?
Let’s be real, tenants that don’t pay the rent don’t just scare aspiring investors, but they scare experienced investors too. No one enjoys going through the eviction process and in some states, it can be VERY costly AND lengthy. No fun, right?
Pro tip: Republican/red states typically have the shortest eviction periods.
But how can I ensure rent? Section 8
What is Section 8? Simply put, it’s a housing assistance program where the government gives certain people vouchers. This means their rent is paid directly by the government. A pretty surefire way to get your money, right?
However, because this sounds too good to be true, it also comes with a lot of scrutiny. So let’s debunk some of the section 8 myths here!
Total Myths:
❌ Section 8 tenants are unreliable
❌ You have no control over the property
❌ You can’t run your own screening process
❌ You can’t evict a Section 8 tenant
ALL NOT TRUE! Yes, Section 8 is a government-run program and yes it’s typically for low-income families/individuals, but it can actually be fairly challenging for individuals to secure a spot in the program so most will do their absolute best to not lose it.
Besides the guaranteed rent, there are some other huge perks too, such as:
✅ Less turnover
✅ Regular inspections for you as a landlord, and
✅ You’re helping with the affordable housing crisis.
But of course, like everything, there will always be cons. To name a few:
⭕ There is a lot more paperwork than renting to a non-Section 8 tenant
⭕ Your property can sit vacant longer because inspections typically require additional time
⭕ Rent may not catch up to the market (but in some cases it can actually be more 🤯)
If you’re curious what a rental in your area could make with the Section 8 program, you can use THIS site to see what the fair market rents are. In some cases, you may be able to get more than what you are currently getting outside the program!
What’s Happening in Our Community?
We’ve had a pretty busy month in the FI Tribe. Last week we had the Section 8 Queen, Jhanel Wilson come tell us everything she knows about Section 8 housing, Ashley Powell talking Airbnb markets, and so much more!
We’ve also had some pretty big wins for our members last month:
🎉 Adrienne Sherwood closed on her first flip and we are super excited to hear how it goes!
🎉 Dan McDonald published his first children’s book called “The Adventures of Savvy. Becoming Financially Savvy.”
We’re all taking steps towards FI, some taking different steps than others, but together we know we can all grow true, meaningful wealth!
Now, let's talk about tomorrow night, Reader, do you have any plans?
If not, the FI Tribe is hosting a FREE Webinar: BRRRR METHOD UNLEASHED: TIPS & TACTICS and we want YOU to join us! It's this Thursday, April 18th at 8PM EST.
See you tomorrow night and happy investing!
P.S. Are you looking for more support on your real estate investing journey?
JOIN THE FI TRIBE! A tight-knit, supportive, down to earth community of successful real estate investors ready to support you on your way to financial freedom.
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