OOS Investing in Detroit-Section 8 Specifically

[Nicholas Nakamura]

Hello Everyone,

Been reading a lot on Section 8 investing in both Cleveland and Detroit. Have been reading so many horror stories from investors in both cities, but also some successful ones. Have about $150K to invest. Looking at purchasing SFH for the purpose of renting to Section 8 tenants. Looking for referrals to build a trustworthy team on the ground, especially a good PM. Any direction and guidance is appreciated. Thanks!

[Alex Sarnoff]

Seems like everyone is jumping on section 8 because it's trending or in-vogue. It is not a great subsection of the residential asset class. Capex will be very high and will kill net income regardless of where you invest.