Section 8

So I'm Don McKee.

I serve on the Chippewa County Section 8 Housing Board, and HUD has cut back their funding, and they're cutting back all of the administrative funds to a huge degree, so there's not as much money coming in to even administrate the programs.

So in Chippewa County, we do Chippewa and Lacaparo County, or Chippewa and Yellow Medicine County, and they just keep cutting back the funds.

We're supposed to be able to have vouchers for 129 people to use for Section 8 housing, and right now HUD is allowing us to use 78 because the funding's not there.

the federal government is cutting back so much, and we have to figure out then how are we going to fund this, even just to pay the administrative costs are way beyond what HUD is reimbursing counties for to do this.

So we're trying to really find ways, and they meet with our executive director, every month and tell her what she can spend what she can see if they're going to cut back and so now we're trying to get the rates for the new year uh... and they're thinking they're going to cut back some more so it just continues to go the wrong way which means that we can't help as many people with section eight housing right now we have a hundred and fifty two people waiting with that one apply for section eight housing fifty of those are people in montevideo itself the rest are from the surrounding area that we can't help Because we can't give out any more vouchers.

Welcome to the Property Profits Real Estate Podcast, the show where real estate investors talk strategy, capital, deals, and growth with your host, Dave DuPont.

Chances are you've heard of tax liens, tax deed sales, but have you heard of combining that with doing a BRRRR and then getting Section 8 tenants into the property? Probably not.

I've done over 1500 interviews and Jim Tannehill is the first gentleman I'm speaking with that's doing this particular strategy.

So Jim is zooming in from beautiful Carmel, Indiana, and he's been in the space.

you typically renting to?

We do a variety of private tenants.

Some are nurses, some are, you know, working casinos, some have a small portion of income, and they have a tenant portion with Section 8.

Some don't.

And I know it tore my family up, for sure, because I had four uncles that got hooked on crack.

I had three aunties, and two of them sold drugs, but they ended up being on Section 8, and then they ended up having, like, out of four kids, three different baby dads, so it was straight dysfunctional.

But they made it seem normal, and so you kind of, like, got caught up in, like, is this normal, or where is the normal? Then you go to school, and if they knew, like, so I had a big family, and my last name was Fletcher, so In the school, they knew I was a Fletcher, and I came, and we lived on Summit Street, which is like the ghetto, so they had the projects, and you had Summit.

You would already get labeled as, you know, a thug or a dope dealer or a dumb athlete.

So he was the man of the house at 14.

So he had four other siblings.

His mom was on Section 8.

His mom was getting food stamps, so he provided food.

And, uh, section itself there's going to be just like there's uh there's good tenants and bad tenants that are not in section eight there's good tenants and bad tenants that are on section eight

so and i don't know how section eight works like all across the country but the the housing assistance here in texas and i i think it's actually per county every county is different but what it is is it's not like all right this complex over here has 10 section 8 and so you go and you apply for section 8 for that what it is here is the person applies to get on the housing assistance and so it follows a person and so if the person wants to go rent a unit in your complex that it will follow them with it.

It's not like, all right, you have to devote so many units of your property to Section 8.

I've heard that some places are like that.

So, yeah, you're talking about different things.

So there's different types of government assistance programs.

Section 8, I'm not even sure what it's called now, maybe not even Section 8 anymore, but that is one of them.

It's a voucher, and they can bring that just about anywhere in the city or county.

She was 22 years old, pregnant with her second child, and living on Section 8 housing assistance when she started.

Today, she's a third-ranked agent in her office.

She is the president-elect of her board and on track to have her best year ever.

I had, yes, sir.

First, I want to thank you for unpacking this story for us because I think in real estate we often get to hear about how everybody's selling 150 homes a year and making $7.2 million and we don't always deal with the years that it's tough or the struggles we get through to even get here.

It started for you pretty young and you got some attention on a pivot call when you talked about getting out of Section 8 housing,

which is

when you're getting basically a stipend from the government to help pay for your expenses so that you can live and survive.

could get at least.

Instead of Section 8.

Yeah.

Section 8 would be the alternative,

really.

So it sounds like it could make a lot of sense financially, but...

You know, I wish that perhaps one of the ways of thinking about this is like, do we have actually too much emotional content from the state vis-a-vis us?

Well, and I think about, I remember when I first learned that, and I might get these numbers wrong, you might be able to correct me, but that like Section 8 housing costs less than the home mortgage deduction.

Yes.

Smaller budget

And that was really helpful for me in terms of being like, whoa, I'm seeing this as kind of something to be like, feel like I'm morally upright.

And I might see someone else is like, oh, they can't get their act together.

So they're living in Section 8 housing as opposed to like, yeah, everybody should be able to live in a house.

And we as a country are supporting that in a multitude of ways, whether you're actually in like an upper income or a lower income bracket.

There's going to be a lot of people that cannot do this.

Not only that, are the people we used to have, you know, Section 8.

Well, I'm not sure if we still have Section 8 to any large degree or how much.

Is this going to be similar where you have people that you don't want to live next door to because it's broadening this? We do want people in homes.

But what is it that is stopping people that should qualify from being in those homes? All right.