My first section 8 look deal

[Samson Hall]

Hey everybody, I’m getting out of high school and looking to do my first deal. I’m looking to do section 8 rentals in the rust belt, states like West Virginia and Ohio, Although I live in Florida. Not looking for concessions here just seeing if anyone has experience in that field. Although I’d like to do a large dscr loan and get 4 to 5 three and four bedroom units, I’m likely goin to start with just one quality property in order to establish proof of concept to present to future down payment partners or private money lenders. If anybody’s got advice I’m here to learn and listen, thank you!

[Samson Hall]

Quote from @Jonathan Greene:

If you are just getting out of high school, I don't know that a large DSCR loan seems like a good idea or possible, but maybe easier if you haven't built a ton of credit yet. I would not in any way look to do Section 8 rentals out of state at 18 or 19 years old. What is the pull to do that? Section 8 can be great, but you have to know the regulations and complications of each area and how that locality processes the applications and tenants.

 I have family in West Virginia, Ohio, and Kentucky, 2 of which are realtors and another is a cpa. I’ve looked at some on market properties there, for example a 4 bd 2 bath home in Morgantown, 26505. the Small area Fmr is 1900/mo for a 4bd unit. Since the property has been up for more than three months and there’s slight cosmetic repairs needed, I’m pretty sure I can negotiate the price down 10-15%. I plan on using a property management company in order to keep the property in order until I move (eventually I want to bring property managers under my own business entity to focus only on my properties). The Dscr and Cashflow looks beautiful and Morgantown in the 3rd largest city in West Virginia. I’m also looking at possibly house hacking a triplex in Charleston, Wv. Personally the draw to do section 8 is the Cashflow, automated payments, loan pay down, above fair market rent, and the lower needs for capital.