Section 8/Class D Neighborhood

[Danual Berkley]

I plan to make an offer on the unit listed below.  I will use it as my very first rental property for section 8 housing. It should rent for $750 per month on section 8. 

The unit was broken into earlier this year in February, and needs about 10K in rehab (HWH, furnace, bath tub, paint, flooring). Think I estimated that ok?

The property value may decrease over time. It's in a Class D neighborhood. Its been on the market for 54 days and seller wants 39K. Last sold for 15k in February.  I plan to offer 17k. What are your thoughts? Should I go for it? This is my very first go at it, and worst case scenario I can afford to take a loss.

https://www.zillow.com/homedet...

[David Wandel]

Did you grow up in the "hood"? Ever live there? Are you a recovering addict? How much exposure have you had to this section of society? Class D neighborhoods are an experience that many of us have not had. If you want to be successful from the start you have to understand this part of society, how they live, their mindset, etc. Or, you can learn as you go and make many mistakes. Mistakes that will likely cost you thousands of dollars. I have around 33 doors in C-/D neighborhoods and it is completely different class compared to my C+/B properties.

Out of those 33 doors only 5 are section 8. Most people that have a voucher are going to move to a little nicer neighborhood.

I don't know the labor rates in your area bit your repair estimate sounds a little low