Rental / Section 8 Properties

[Jahangir Hasanov]

Hello everyone. I’m new to bigger pockets and in need of advice. I’m new to investing and was looking to invest into 2-4 bedroom houses for Section 8 rentals. I live in NY and was looking in Detroit, MI, Cleveland, OH and Philadelphia, PA areas. Found lots of properties that might be in need of rehab for a relatively low price which seemed like a good deal to me. Question is how hard is to find section 8 tenants in those cities and which areas I should be looking to purchase that are section 8 friendly. Any advise would be greatly appreciated. Thank you. 

[Travis Biziorek]

Quote from @Nicholas L.:

@Arsen Atanasovski

yes totally agree it's possible.  you can do the same in Pittsburgh.  i just worry about the posters in HCOL areas who want to do it all from Internet.  that is what is not a good idea =)

Quote from @Arsen Atanasovski:

Send me a DM I have a few deals you might fit right in since you’re going down that route. I will need a little more information so I can get a better idea what would work for you here in Detroit .

I think we're all in agreement here. The reality is you need a strong team.

Whether you build that team yourself or plug yourself into an existing one is the question. Building from scratch is damn hard and not for everyone. Trusting an existing team is also challenging because there are so many sketchy folks out there.

I've seen it all. 

But I think we all agree that it's easy to get burned in these midwest markets that are attractively priced. Folks get over confident, think "what's the worst that can happen" and they often find out it's far worse than they could have imagined. 

[Bob Stevens]

Quote from @Jahangir Hasanov:

Quote from @Bob Stevens:

Quote from @Nicholas L.:

@Jahangir Hasanov

those low price points are tempting for a reason... probably lots of deferred maintenance and potentially in more challenging neighborhoods.

if you think you're going to buy a random property off Zillow and start cash flowing in month 1 or even year 1... buckle up.

i strongly recommend you start with a house hack locally instead.  or... move to one of the cities, roll up your sleeves, and start in person.

https://www.biggerpockets.com/forums/12/topics/1171104-the-m...

 If you follow " my rules " when renting to ANYONE cash or a govt program. Buy right, RENO right, rent right, all is fine. There is not any more deferred maintenance renting to a govt tenant vs cash. 

Hey Bob. I would love to learn few things from you and your approach to the Ohio market. You also mentioned you don’t use brokers. How do you go about finding the properties? Unless you go door to door yourself or use wholesalers. Thank you 

 Door to door, HECK NO!! I have a large network. I can get as many as I want. I have done 100s and 100s and 100s never using a broker. Closing on several , this / next week. 

All the best 

[Bob Stevens]

Quote from @Arsen Atanasovski:

I’m a section 8 investor half of those items do not comply, difficult to evict?? Does that mean the city or government can’t pay you rent? Never heard of this never had this happen. Yearly inspections, great I do them 2-3 times a year it’s my property would like to see them and check on them. Have you driven a car and not do an oil change? Of course you don’t get payment until the application and process is complete and approved by the committee then you allow them access and that’s after they paid the SD. Difficult selling? Really? Hi investor, I have 10 vacant homes for sale would you like to give me a “low ball offer”??? Hi investor I have 10 fully leased section 8 tenants oh and btw here is my income statements and all the income from my section 8 properties showing the state of where ever you live depositing into my account, which on do you think you will be better off when time comes to sell??? 

 LOVE it when another experienced investors posts on BP,  See @Bruce Woodruff that guy that posted the info is clueless :) . However, I am glad you posted it as it gives us a " platform" to show the real deal, ALL GOOD!! 

Keep crushing it !! 

[Cathy W.]

Hi Jahangir,   I am a realtor in the Philadelphia area nd I also own a few rental properties in Philadelphia. I have some S8 and dome through another program.  Also Philadelphia is has a rental improvement fund for landlords to do improvements to  their properties with a 10 or 15 year forgiveness. 

https://phdcphila.org/residents-and-landlords/landlords/rent...

  I would be happy to provide any help that I can.

[Remington Lyman]

Quote from @Jahangir Hasanov:

Quote from @Bob Stevens:

Quote from @Nicholas L.:

@Jahangir Hasanov

those low price points are tempting for a reason... probably lots of deferred maintenance and potentially in more challenging neighborhoods.

if you think you're going to buy a random property off Zillow and start cash flowing in month 1 or even year 1... buckle up.

i strongly recommend you start with a house hack locally instead.  or... move to one of the cities, roll up your sleeves, and start in person.

https://www.biggerpockets.com/forums/12/topics/1171104-the-m...

 If you follow " my rules " when renting to ANYONE cash or a govt program. Buy right, RENO right, rent right, all is fine. There is not any more deferred maintenance renting to a govt tenant vs cash. 

Hey Bob. I would love to learn few things from you and your approach to the Ohio market. You also mentioned you don’t use brokers. How do you go about finding the properties? Unless you go door to door yourself or use wholesalers. Thank you 

 You have to start cold calling. That is what I do here in Ohio

[Remington Lyman]

Quote from @Jahangir Hasanov:

Hello everyone. I’m new to bigger pockets and in need of advice. I’m new to investing and was looking to invest into 2-4 bedroom houses for Section 8 rentals. I live in NY and was looking in Detroit, MI, Cleveland, OH and Philadelphia, PA areas. Found lots of properties that might be in need of rehab for a relatively low price which seemed like a good deal to me. Question is how hard is to find section 8 tenants in those cities and which areas I should be looking to purchase that are section 8 friendly. Any advise would be greatly appreciated. Thank you. 

 finding section 8 tenants has been easy for me in Ohio

[Oliver Martinez]

Quote from @Arsen Atanasovski:

I’m a section 8 investor half of those items do not comply, difficult to evict?? Does that mean the city or government can’t pay you rent? Never heard of this never had this happen. Yearly inspections, great I do them 2-3 times a year it’s my property would like to see them and check on them. Have you driven a car and not do an oil change? Of course you don’t get payment until the application and process is complete and approved by the committee then you allow them access and that’s after they paid the SD. Difficult selling? Really? Hi investor, I have 10 vacant homes for sale would you like to give me a “low ball offer”??? Hi investor I have 10 fully leased section 8 tenants oh and btw here is my income statements and all the income from my section 8 properties showing the state of where ever you live depositing into my account, which on do you think you will be better off when time comes to sell??? 

 Hey Arson, can we connect?