Investing in Section 8 rentals in Detroit

[Nicholas Foy]

Hello, I am looking at two currently Section 8 occupied rentals in the Eye Neighborhood in Detroit and Morningside. I’m an OOS investor and I’m sending my realtor over to inspect these properties to see if either one would be a solid addition to my portfolio. What should I have the realtor look for when he goes out to see the properties? This is my first time considering Section 8 so I’m doing my due diligence in making a decision. Thank you for your time. 

[Drew Sygit]

@Nicholas Foy average sales price in The Eye was $87,944 in 2023.

We consider it a Class C- Nieghborhood.

So, tenants will probably have FICO scores under 580.

Means you may want to use a Vacancy/Tenant nonPerformance factor of 20%+ in your metrics

You'll also need a real good team on the ground to minimize losses.