Making the Most of Affordable Housing
Affordable housing strategies for investorsAffordable housing is sought after by individuals who are low income or those who rely on government assistance for housing costs. Investors who wish to provide affordable housing to these individuals will need to meet specific criteria for doing so. Property must be in good condition, safe and must meet the needs of the community.
Purchasing cheap homes to provide affordable housing opportunities for individuals does not have to be done through government programs. Investors may select to purchase low cost properties, renovate them and then offer low rent tenant opportunities. Investors working with or not working with the government for housing needs should keep the following in mind:
1. Determine the need for housing for low income within the area, particularly paying attention to current rents to determine profit potential.
2. Work with local real estate agents to locate cheap homes for sale .
3. Seek out local government officials, politicians and activists to establish an affordable housing program whenever possible.
Obtain government tax breaks for low income housing programs
Internal Revenue Service (IRS) offers the Low Income Housing Tax Credit (LIHTC) program to investors who are interested in low income projects. The program extends for 10 years' worth of credits. The U.S. Department of Housing and Urban Development (HUD) provides a detailed resource for landlords able to provide Section 8 Vouchers to individuals. The resource offers guidance, tools, tax information and a list of public housing agencies to help investors make the proper decisions.
Establish subsidized housing voucher programs through local and national assistanceSubsidized government housing is owned by private investors in many situations. These properties must meet specific qualifications under HUD guidelines, yet owners can find local resources to assist them.
Michigan State Housing Development Authority. To learn the legal requirements for investing in public housing, consider Justia, a resource that is able to point out local law requirements.
Choose qualified, inexpensive low income housing for investmentProviding cheap homes for rent can only be done when investors can purchase property affordably. Properties must also be considered closely for their ability to meet specific guidelines of local housing authorities. For this reason, investors need well-trained professionals able to provide them with detailed local information and property locating.
- Private and public assisted living is a necessary tool, especially in a housing downturn. When property values are low, many people who have never invested in property before become investors and landlords. One should network with other investors when making the most of affordable housing.
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