Daily Real Estate News, August 2, 2010
Some landlords who own high-end properties in cities where prices fell dramatically are renting them to Section 8, low-income tenants.
On the Web site GoSection8.com, the largest rental listing service for Section 8 housing program tenants, landlords woo tenants with descriptions of swimming pools, great rooms and luxury master baths. "More and more, I'm seeing tenants turn down places," says Arman Davtyan, who owns seven Section 8 properties.
The reason owners of high-end properties are seeking Section 8 tenants is financial. The government guarantees at least partial payment — enough for a landlord to make a tidy profit.
For instance, Davtyan purchased a four-bedroom home in North Las Vegas last year for $60,000 cash. He charges the government $1,436 in rent, giving him an annual profit of $15,000 per year after insurance and property taxes, he calculates.
"It's the most lucrative way to go right now," he says. "Nowhere else does your money make that kind of return."
Source: The Wall Street Journal (08/02/2010)
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