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Best State/City for Section 8
Hello, any input on the best market for section 8? Looking for a way to analyze the highest allowance from Sec8 vs the lowest priced homes, wondering where you can get the most bang for your buck. I have heard the target is at least 400-500 per month net positive cash flow based on 20% down. Where are you seeing opportunities? Thank you!
Quote from @Arsen Atanasovski:
Absolutely
Hello Arsen, Detroit looks like a very viable option for section 8 cash flow, but its just so large of an area. Any tips on how to narrow down a decent section of Wayne County? Every address I plug into Spotcrime.com lights up like a Christmas tree!! lol
Quote from @MARK S KING:
Hello, any input on the best market for section 8? Looking for a way to analyze the highest allowance from Sec8 vs the lowest priced homes, wondering where you can get the most bang for your buck. I have heard the target is at least 400-500 per month net positive cash flow based on 20% down. Where are you seeing opportunities? Thank you!
No clue how you find the best state for it. I get 1200- 1400 for 4 br in Cleveland with an all in price of about 90k, I would think anyone would be happy with that. I am getting 825 for 2 brs apartments,
You will need boots on the ground for this city this is no LA or Miami or Houston. You will not receive and appreciation but you will cashflow like crazy! Detroit is a street by street city not area, or zip code. For example I just picked up a 3 bedroom home for $50,000 and rented it for $1450 with $6000 in rehab. You can do the same on a different street and get $1200 or less and maybe have a hard time renting it. Again it’s not like 90% of the areas you look at and just pick from Zillow and run numbers.
Thank you so much for your insight. Seems like I have my work cut out for me. I defiantly see the opportunity.
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#1 Classifieds Contributor
- Real Estate Broker
- Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
Quote from @MARK S KING:
Hello, any input on the best market for section 8? Looking for a way to analyze the highest allowance from Sec8 vs the lowest priced homes, wondering where you can get the most bang for your buck. I have heard the target is at least 400-500 per month net positive cash flow based on 20% down. Where are you seeing opportunities? Thank you!
Saw Cleveland was mentioned as a Section 8 destination for you. I've been killing it with Section 8 deals in Cleveland for over a decade. Some other areas in Ohio you may want to look into for Section 8 deals are Akron, Canton, Youngstown and Toledo. All of those markets have been good to me as well.
Quote from @Arsen Atanasovski:
Absolutely
Wow, that is quite absurd. 30,000 voucher holders with no where to go? How did you get this info? Whenever I called the Southern Las Vegas Housing Authority to ask them how many voucher holders they have who are currently in possession of a voucher with no where to go they would never give me an exact number.
Well like they say it’s not what your know it’s who you know :)
Here in Ohio, Section 8 landlords tend to do very well in Cleveland. Even here in Columbus, Section 8 is very doable in C class neighborhoods.
There are various housing committees, grants, and other organizations in and around the city of Detroit. There are many maybe 80% of them will not share much information with investors or landlords, it’s not their job and frankly that’s just extra work for them the case workers. Some of them are rockstars and have a drive in their job, those few that I know have provided me their database of open vouchers that need to be fulfilled and they are having a hard time. One of them calls me every week to get an update on my properties and whether I have any vacant so she can fill. Their rates are very reasonable 1bedroom $1000 2 bedroom $1250 3. Bedroom $1550. But the reason I’ve gotten this information is the upkeep I do with my properties and the case workers love it! They come in on the 1st inspection and it’s passed. On all my section 8 inspection I have my contractor walk with the case worker fixing, replacing or repairing anything they might have a concern about right there as the inspection is going on. If it’s an item that needs time or needs to be picked ip at the store I send the case worker my pick up order information in an hour and stating that the guys are working on it. There is one case worker that blew her mind on my process that she sat down with me to discuss their organization and how they have a tier system of helping people get a place to live, this is where I found her information alone had a database of 7000 people that had approved applications but no place to go. When digging deeper, I notice a lot of landlords would rather take cash tenants and not deal with double inspections with section 8. The way I look at it is the place has already been inspected by the city what’s the difference. There are many benefits with section 8 in order for the tenant to be placed in one of my properties they go through a process with the committee then when living in the property they need to abide by lease rules and keep the property in shape, if major damage is made or neglect to the property by the tenant they may losE their voucher from section 8, so it’s a very good idea to go this route and food for thought you always know your property is up to date safety wise and livable with annually inspections.
Quote from @James Wise:
Quote from @MARK S KING:
Hello, any input on the best market for section 8? Looking for a way to analyze the highest allowance from Sec8 vs the lowest priced homes, wondering where you can get the most bang for your buck. I have heard the target is at least 400-500 per month net positive cash flow based on 20% down. Where are you seeing opportunities? Thank you!
Saw Cleveland was mentioned as a Section 8 destination for you. I've been killing it with Section 8 deals in Cleveland for over a decade. Some other areas in Ohio you may want to look into for Section 8 deals are Akron, Canton, Youngstown and Toledo. All of those markets have been good to me as well.
Do you get any appreciation?
I've found that the payment standards are sometimes quite a bit higher than what I'm seeing as actual rent for an area. In these scenarios - does affordable housing tend to go with the actual market rent? Or do they allow closer to what is listed in the payment standard rate? I'm worried about buying my first section 8 investment - and the rent being much lower than what is advertised on the section 8 payment standard. thanks!
You best way to go about this is if you have the target area and properties you like to buy, I would research the local section 8 housing committees and ask them what their rates are and that will give you the actual rental rates they provide.
I have a list of my committees and what they allow to pay for example it’s a chart and it will say 1 bedroom $900 , 2 bedroom $1300, etc……
Quote from @MARK S KING:
Hello, any input on the best market for section 8? Looking for a way to analyze the highest allowance from Sec8 vs the lowest priced homes, wondering where you can get the most bang for your buck. I have heard the target is at least 400-500 per month net positive cash flow based on 20% down. Where are you seeing opportunities? Thank you!
Another vote in for Detroit Michigan
City of Greensboro NC the department of housing pays for a 3 bedroom unit a sum of about $1700/month for section 8 tenant.
If you buy a 3 BR SFH property for less than 160k then you can make at a minimum of 300 per month per unit considering all expenses other than property management.If you include that then reduce anoth 80-100.
This is all assuming interest rate of 7%. If you have better interest or cash then it would be a better return. See the numbers below:
Quote from @Arsen Atanasovski:
Detroit hands down!
Hi @Arsen Atanasovski thanks for your feedback. Are you still bullish on Detroit?
I'm actively seeking properties to seed my portfolio.
Quote from @Maria Bolivar:
Quote from @Arsen Atanasovski:
Detroit hands down!
Hi @Arsen Atanasovski thanks for your feedback. Are you still bullish on Detroit?
I'm actively seeking properties to seed my portfolio.
Hugely bullish on Detroit. I was just there all last week meeting clients and hunting deals.
I picked up another duplex for my personal portfolio that will bring me to 14 doors.
Quote from @Travis Biziorek:
Quote from @Maria Bolivar:
Quote from @Arsen Atanasovski:
Detroit hands down!
Hi thanks for your feedback. Are you still bullish on Detroit?
I'm actively seeking properties to seed my portfolio.
Hugely bullish on Detroit. I was just there all last week meeting clients and hunting deals.
I picked up another duplex for my personal portfolio that will bring me to 14 doors.
Fantastic! Thank you so much @Travis Biziorek Last night we started to scout properties in Michigan. I'd love to connect with you. We'll need boots on the ground and perhaps you already have referrals for property managers/handymans that can help us with the inspections and required fixes.
Quote from @Travis Biziorek:
Quote from @Maria Bolivar:
Quote from @Arsen Atanasovski:
Detroit hands down!
Hi @Arsen Atanasovski thanks for your feedback. Are you still bullish on Detroit?
I'm actively seeking properties to seed my portfolio.
Hugely bullish on Detroit. I was just there all last week meeting clients and hunting deals.
I picked up another duplex for my personal portfolio that will bring me to 14 doors.
Quote from @Gavin Horkheimer:
Quote from @Travis Biziorek:
Quote from @Maria Bolivar:
Quote from @Arsen Atanasovski:
Detroit hands down!
Hi @Arsen Atanasovski thanks for your feedback. Are you still bullish on Detroit?
I'm actively seeking properties to seed my portfolio.
Hugely bullish on Detroit. I was just there all last week meeting clients and hunting deals.
I picked up another duplex for my personal portfolio that will bring me to 14 doors.
My portfolio is managed with our internal company. We manage over 500 doors in Detroit now but only offer it to folks we work with on the acquisition side.
Quote from @Arsen Atanasovski:
There are various housing committees, grants, and other organizations in and around the city of Detroit. There are many maybe 80% of them will not share much information with investors or landlords, it’s not their job and frankly that’s just extra work for them the case workers. Some of them are rockstars and have a drive in their job, those few that I know have provided me their database of open vouchers that need to be fulfilled and they are having a hard time. One of them calls me every week to get an update on my properties and whether I have any vacant so she can fill. Their rates are very reasonable 1bedroom $1000 2 bedroom $1250 3. Bedroom $1550. But the reason I’ve gotten this information is the upkeep I do with my properties and the case workers love it! They come in on the 1st inspection and it’s passed. On all my section 8 inspection I have my contractor walk with the case worker fixing, replacing or repairing anything they might have a concern about right there as the inspection is going on. If it’s an item that needs time or needs to be picked ip at the store I send the case worker my pick up order information in an hour and stating that the guys are working on it. There is one case worker that blew her mind on my process that she sat down with me to discuss their organization and how they have a tier system of helping people get a place to live, this is where I found her information alone had a database of 7000 people that had approved applications but no place to go. When digging deeper, I notice a lot of landlords would rather take cash tenants and not deal with double inspections with section 8. The way I look at it is the place has already been inspected by the city what’s the difference. There are many benefits with section 8 in order for the tenant to be placed in one of my properties they go through a process with the committee then when living in the property they need to abide by lease rules and keep the property in shape, if major damage is made or neglect to the property by the tenant they may losE their voucher from section 8, so it’s a very good idea to go this route and food for thought you always know your property is up to date safety wise and livable with annually inspections.
Great post, thank you for sharing!
Quote from @Travis Biziorek:
Quote from @Gavin Horkheimer:
Quote from @Travis Biziorek:
Quote from @Maria Bolivar:
Quote from @Arsen Atanasovski:
Detroit hands down!
Hi @Arsen Atanasovski thanks for your feedback. Are you still bullish on Detroit?
I'm actively seeking properties to seed my portfolio.
Hugely bullish on Detroit. I was just there all last week meeting clients and hunting deals.
I picked up another duplex for my personal portfolio that will bring me to 14 doors.
My portfolio is managed with our internal company. We manage over 500 doors in Detroit now but only offer it to folks we work with on the acquisition side.
Let's connect, I'm interested.
Quote from @Travis Biziorek:
Quote from @Gavin Horkheimer:
Quote from @Travis Biziorek:
Quote from @Maria Bolivar:
Quote from @Arsen Atanasovski:
Detroit hands down!
Hi @Arsen Atanasovski thanks for your feedback. Are you still bullish on Detroit?
I'm actively seeking properties to seed my portfolio.
Hugely bullish on Detroit. I was just there all last week meeting clients and hunting deals.
I picked up another duplex for my personal portfolio that will bring me to 14 doors.
My portfolio is managed with our internal company. We manage over 500 doors in Detroit now but only offer it to folks we work with on the acquisition side.
Hey Travis I never knew this I thought it was just your portfolio, where is the office? I want to stop by and maybe possibly pass some properties over to your PM company. Send me the address in a DM man thanks!
Quote from @Arsen Atanasovski:
Quote from @Travis Biziorek:
Quote from @Gavin Horkheimer:
Quote from @Travis Biziorek:
Quote from @Maria Bolivar:
Quote from @Arsen Atanasovski:
Detroit hands down!
Hi @Arsen Atanasovski thanks for your feedback. Are you still bullish on Detroit?
I'm actively seeking properties to seed my portfolio.
Hugely bullish on Detroit. I was just there all last week meeting clients and hunting deals.
I picked up another duplex for my personal portfolio that will bring me to 14 doors.
My portfolio is managed with our internal company. We manage over 500 doors in Detroit now but only offer it to folks we work with on the acquisition side.
Hey Travis I never knew this I thought it was just your portfolio, where is the office? I want to stop by and maybe possibly pass some properties over to your PM company. Send me the address in a DM man thanks!
Shoot me an email, brother. Our brokerage office is in the suburbs.
Quote from @James Wise:
Quote from @MARK S KING:
Hello, any input on the best market for section 8? Looking for a way to analyze the highest allowance from Sec8 vs the lowest priced homes, wondering where you can get the most bang for your buck. I have heard the target is at least 400-500 per month net positive cash flow based on 20% down. Where are you seeing opportunities? Thank you!
Saw Cleveland was mentioned as a Section 8 destination for you. I've been killing it with Section 8 deals in Cleveland for over a decade. Some other areas in Ohio you may want to look into for Section 8 deals are Akron, Canton, Youngstown and Toledo. All of those markets have been good to me as well.
I’m looking to get into section 8 in Ohio as well, do you think you could provide some numbers on one of your properties. CocRoi, Cashflow, and dscr would all be helpful as well as expenses