Josh Bauerle
Josh Bauerle has been a guest on Collecting Keys, the real estate investing podcast hosted by Mike DeHaan, Dan Austin and Dylan Koch.
Section 8 Housing: Pros, Cons, and Your Key to Consistent Cash Flow w/ Josh Bauerle
Columbus, Ohio investor Josh Bauerle walks through a lean rental business he and his wife run themselves: 29 units, five flips this year, hard money that covers 100% of purchase and rehab, and a shift to Section 8 tenants to solve cash flow problems. He explains why Section 8 rents in his county run several hundred dollars above market, what the approval delays and inspections cost him in time, and how he decides when to sell a property instead of refinancing.
Key takeaways
- Section 8 rents in Josh's county are set by bedroom count and averaged across the whole county, so properties in lower-rent pockets can rent for $400-$500 above market.
- Section 8 tenants tend to stay longer because Section 8-friendly units are hard to find, and the voucher itself gives tenants a reason to take care of the property and pay their portion.
- The trade-off is front-end pain: inspections, paperwork, and a housing authority that can take up to two months to approve, plus limited once-a-year rent increase windows.
- Josh's 20 rentals bring in $21,000 a month in rent with just under $5,000 a month in cash flow, helped by self-managing (cutting the 10% PM fee) and refinances now back in the 6s.