7619 Stout Street Detroit

$59,000
SKU: 1967
Property type: House
Bedrooms
2
Bathrooms
1

Financial Details

  • Est. Rent PCM: $750
  • Yearly Income: $9,000
  • Management: $900
  • Taxes: $819
  • Insurance : $550 Est.
  • Net Income: $6,731
  • Net Yield: 14.02%

Description

Tenanted two bedroom/one bathroom house on Stout Street in the neighborhood of Warrendale. It was recently painted and is well maintained by the tenant.

The tenant is a Section 8 beneficiary.

What is Section 8?

Consistent Rent Payment by the Government

Section 8 is a government program that has provided rental assistance to low-income families, the elderly, and the disabled since 1937. Tenants apply for the program, and if they meet certain requirements, they are granted a housing voucher from the U.S. Department of Housing and Urban Development. This voucher allows the tenant to look for rental units within a certain price range that are inspected and approved by the local Public Housing Authority. 

The Public Housing Authority is responsible for paying the majority or all of the rent to the property owner or rental management company by check or direct debit each month. Renting to a Section 8 tenant, therefore, provides the advantage of receiving the rental payment consistently each month.

Section 8 tenants know that any violation of the terms of the lease agreement, including paying rent, could result in the loss of their Section 8 voucher. Therefore, they have a strong incentive to pay their portion of the rent each month.