Section 8 Rentals

Member since 2023 · 5 posts · 12 votes

I am considering acquiring properties to be rented under the section 8 program. My thought is, buying between 50-90k livable (or less than 10k rehab) and being able to rent for 2% or at least close to it trumps the cashflow of typical market rentals since HUD establishes max payable amounts depending on number of bedrooms, and is usually higher than market rent rates.

My question(s) are, who has experience in this and what are some good markets to consider? I know it needs to be landlord friendly state but does anybody have specific markets that have performed well with section 8? Markets that have great need for affordable housing. What are some caveats of this? Don't bash me with the standard "they will trash your place". The potential tenants will be screened thoroughly just as I would with a standard market tenant. That is always going to be a risk.

Typically, tenants are only required to pay up to 30% of the rent while the gov pays the remainder. My thought is, as long as what the government pays covers the property expenses and provides some cashflow, the tenant portion is just a bonus.

Anybody with experience in this please share your opinion!

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Michael Orakpo

Developer · Cleveland, OH · Member since 2015 · 26 posts · 19 votes

@Mark Cruse

Oh PLEASE. Everything is not about Race, please stop it! Is Black Folks have got to stop playing victim every chance we get. Everytime someone is being straight forward and speaking the obvious it turns into this PC BS.

You are turning a Section 8 thread into a Race conversation when he mentioned neither.

@James Wise

I’m Black and I did not see any racist undertones with your remarks. Section 8 can ABSOLUTELY be Savages! It is what it is. Grown men shouldn’t be on a Real Estate forum with all this Emotion, it’s Ridiculous.

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Nick C.
Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
2y
I think you're going to have trouble finding livable properties for 50-90k, unless you're in a market nobody wants to live in.
5 Reply
Evan HoppleBusiness Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2023 · 284 posts · 420 votes
2y
plenty of those deals in the Cleveland/Dayton/Columbus markets. Ohio is very landlord friendly
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Jason Allen
Member since 2019 · 104 posts · 72 votes
2y
Quote from @Evan Hopple:

plenty of those deals in the Cleveland/Dayton/Columbus markets. Ohio is very landlord friendly
Ohio is, Cleveland is not
0 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
2y
Quote from @Jake Minyen:

I am considering acquiring properties to be rented under the section 8 program. My thought is, buying between 50-90k livable (or less than 10k rehab) and being able to rent for 2% or at least close to it trumps the cashflow of typical market rentals since HUD establishes max payable amounts depending on number of bedrooms, and is usually higher than market rent rates.

My question(s) are, who has experience in this and what are some good markets to consider? I know it needs to be landlord friendly state but does anybody have specific markets that haveIa performed well with section 8? Markets that have great need for affordable housing. What are some caveats of this? Don't bash me with the standard "they will trash your place". The potential tenants will be screened thoroughly just as I would with a standard market tenant. That is always going to be a risk.

Typically, tenants are only required to pay up to 30% of the rent while the gov pays the remainder. My thought is, as long as what the government pays covers the property expenses and provides some cashflow, the tenant portion is just a bonus.

Anybody with experience in this please share your opinion!

I am an expert with all govt programs, Not sure where you are getting properties for all in 70kish, but IMO that will be a war zone, I have done 100s and 100s and 100s , probably over a thousand move in and outs with all govt programs in the Cleveland markets, However you are not getting anything all in 70kish, I can you can't, I DO NOT mean that the way it sounds. ALL IN 60K upstate NY, but do not expect any appreciation. BTW I assume you are cash if not your buy box is even more unrealistic
All the best

3 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
2y
Quote from @Evan Hopple:

plenty of those deals in the Cleveland/Dayton/Columbus markets. Ohio is very landlord friendly

HMM really, where are the all-in deals in Cleveland or Columbus, for 60k? I will take as many as you have, :)
3 Reply
Robert EllisBusiness Member
Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
2y
Quote from @Jake Minyen:

I am considering acquiring properties to be rented under the section 8 program. My thought is, buying between 50-90k livable (or less than 10k rehab) and being able to rent for 2% or at least close to it trumps the cashflow of typical market rentals since HUD establishes max payable amounts depending on number of bedrooms, and is usually higher than market rent rates.

My question(s) are, who has experience in this and what are some good markets to consider? I know it needs to be landlord friendly state but does anybody have specific markets that have performed well with section 8? Markets that have great need for affordable housing. What are some caveats of this? Don't bash me with the standard "they will trash your place". The potential tenants will be screened thoroughly just as I would with a standard market tenant. That is always going to be a risk.

Typically, tenants are only required to pay up to 30% of the rent while the gov pays the remainder. My thought is, as long as what the government pays covers the property expenses and provides some cashflow, the tenant portion is just a bonus.

Anybody with experience in this please share your opinion!

Affordable housing and Section 8 are two great programs to go after. I would encourage you to look at more than just single family. it is a slow way to grow especially if you have the funds. buy 2, 4, 8 at a time instead by doing multifamily.
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3 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
2y
Quote from @Jake Minyen:

I am considering acquiring properties to be rented under the section 8 program. My thought is, buying between 50-90k livable (or less than 10k rehab) and being able to rent for 2% or at least close to it trumps the cashflow of typical market rentals since HUD establishes max payable amounts depending on number of bedrooms, and is usually higher than market rent rates.

My question(s) are, who has experience in this and what are some good markets to consider? I know it needs to be landlord friendly state but does anybody have specific markets that have performed well with section 8? Markets that have great need for affordable housing. What are some caveats of this? Don't bash me with the standard "they will trash your place". The potential tenants will be screened thoroughly just as I would with a standard market tenant. That is always going to be a risk.

Typically, tenants are only required to pay up to 30% of the rent while the gov pays the remainder. My thought is, as long as what the government pays covers the property expenses and provides some cashflow, the tenant portion is just a bonus.

Anybody with experience in this please share your opinion!

I've made millions investing in Section 8 properties. Biggest thing you need to understand though is it's not "easy money." The majority of these people are absolute animals and they will treat your property as such. Doesn't really matter which city you are in, if you've got $50k-$90k houses with Section 8 tenants in there, your tenant base is made up of total savages. I've seen it in Cleveland, Columbus, Detroit, KC, Indy, Cincinnati, Youngstown, Akron, Canton, Pittsburgh, Memphis and elsewhere.
10 Reply
Chris ClothierBusiness Member
Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
2y
You need to spend time learning the ins and outs both for landlords AND FOR tenants in whatever programs you are planning to use to occupy your properties. They differ from state to state and city to city. Sometimes the differences are in the program and other times they are in the people running the programs. A great program can get ruined by leadership and really bad programs can actually benefit the owners with great leadership. Either way, the point is they will differ so all that really matters is how good is the specific program you are going to use in your investment city.
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Jack SmithPro Member
Rental Property Investor · Massillon, OH · Member since 2017 · 215 posts · 168 votes
2y
Bravo @James Wise !
The only thing I can possibly add to his frank explanation (as always!), is to get to know the local housing authority and find out how easy or difficult they are to work with. Each has it's own internal policies and procedures, each has it's differing level of cooperation with housing providers. Get involved with the local investors of the area you are considering to learn about that LHA as these differences can be significant!
2 Reply
Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
2y
Hey Jake, I have a handful of Section 8 rentals in Detroit.
There seems to be a lot of negativity in the replies. There are pros and cons to the program but overall I've had a positive experience and none of my properties have been trashed/destroyed by tenants.
Most of the deals I'm doing in Detroit are SFH's in the $70k-$90k all in including a cosmetic rehab. Then you're looking at $1,100-$1,300/mo in rent.
6 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
2y
Quote from @Travis Biziorek:

Hey Jake, I have a handful of Section 8 rentals in Detroit.
There seems to be a lot of negativity in the replies. There are pros and cons to the program but overall I've had a positive experience and none of my properties have been trashed/destroyed by tenants.
Most of the deals I'm doing in Detroit are SFH's in the $70k-$90k all in including a cosmetic rehab. Then you're looking at $1,100-$1,300/mo in rent.

Let's keep these kinds of answers in perspective. A handful of rental properties is incredibly small sample size. The reality is that if you are going to buy Section 8 properties in Detroit, you will eventually deal with difficult tenants at some point or another. It's simply the reality of Section 8 tenants in a place like Detroit.
6 Reply
Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
2y
We've seen the good, the bad and the ugly in Metro Detroit S8 tenants.
One S8 tenant kept their house so clean, our ServiceTechs were amazed.
We've had others where our ServiceTechs have stated they won't go back until tenants clean because they are worried about picking up bedbugs, fleas, etc the tenants brought into the property.
Logical Property Management4.9453 Reviews
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2 Reply
Scott Mac
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
2y
Some of these customers can be some real tough cookies.

Maybe you can "Weed" them out better than others (that's possible).

But you should realize a portion of them will make your "No Pets" "No Smoking" rules seem like a grain of sand on the Omaha Beach.

Here are a couple of videos I came across from @James Wise 's site, that might give you a heads up (he has done a ton of these section 8's).
If you have some renter selection secrets, maybe share them on here.
There are people in here that are interested in section-8.
Good Luck!
https://www.youtube.com/watch?v=gLBHJoqIl00
https://www.youtube.com/watch?v=ChOU4WJIYJo

2 Reply
Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
2y
Quote from @James Wise:

Quote from @Travis Biziorek:

Hey Jake, I have a handful of Section 8 rentals in Detroit.
There seems to be a lot of negativity in the replies. There are pros and cons to the program but overall I've had a positive experience and none of my properties have been trashed/destroyed by tenants.
Most of the deals I'm doing in Detroit are SFH's in the $70k-$90k all in including a cosmetic rehab. Then you're looking at $1,100-$1,300/mo in rent.

Let's keep these kinds of answers in perspective. A handful of rental properties is incredibly small sample size. The reality is that if you are going to buy Section 8 properties in Detroit, you will eventually deal with difficult tenants at some point or another. It's simply the reality of Section 8 tenants in a place like Detroit.
I agree it’s a small sample size. But this is true about any market.

With a large enough sample size if you buy LTR’s in the best places of California you’ll end up with a squatter you can evict for 12+ months, for example.

1 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
2y
Quote from @Travis Biziorek:

Quote from @James Wise:

Quote from @Travis Biziorek:

Hey Jake, I have a handful of Section 8 rentals in Detroit.
There seems to be a lot of negativity in the replies. There are pros and cons to the program but overall I've had a positive experience and none of my properties have been trashed/destroyed by tenants.
Most of the deals I'm doing in Detroit are SFH's in the $70k-$90k all in including a cosmetic rehab. Then you're looking at $1,100-$1,300/mo in rent.

Let's keep these kinds of answers in perspective. A handful of rental properties is incredibly small sample size. The reality is that if you are going to buy Section 8 properties in Detroit, you will eventually deal with difficult tenants at some point or another. It's simply the reality of Section 8 tenants in a place like Detroit.
I agree it’s a small sample size. But this is true about any market.

With a large enough sample size if you buy LTR’s in the best places of California you’ll end up with a squatter you can evict for 12+ months, for example.

Well ya sure, but what I am saying is presenting Section 8 rental properties or Section 8 tenants in Detroit as anything other than high risk is not an accurate representation of reality.

It's like the woke people who claim it's racist to call a crime ridden neighborhood dangerous or high risk or even the ghetto. They get all bent out of shape and say crimes happen everywhere. Sure they do, but there are neighborhoods where the statistical frequency is much higher than others etc.....
6 Reply
Scott Mac
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
2y
Quote from @Travis Biziorek:

Quote from @James Wise:

Quote from @Travis Biziorek:

Hey Jake, I have a handful of Section 8 rentals in Detroit.
There seems to be a lot of negativity in the replies. There are pros and cons to the program but overall I've had a positive experience and none of my properties have been trashed/destroyed by tenants.
Most of the deals I'm doing in Detroit are SFH's in the $70k-$90k all in including a cosmetic rehab. Then you're looking at $1,100-$1,300/mo in rent.

Let's keep these kinds of answers in perspective. A handful of rental properties is incredibly small sample size. The reality is that if you are going to buy Section 8 properties in Detroit, you will eventually deal with difficult tenants at some point or another. It's simply the reality of Section 8 tenants in a place like Detroit.
I agree it’s a small sample size. But this is true about any market.

With a large enough sample size if you buy LTR’s in the best places of California you’ll end up with a squatter you can evict for 12+ months, for example.

Not saying that everyone who lives in poor areas is a bad renter, but there seems to be a greater chance of drawing a bad renter in some areas.

If you consider LTR renters in the best zips in Calif. the same as Section-8 renters in Detroit and other monetarily challenged areas the same investment risk....

I am familiar with both areas.

For instance, one of the most dangerous neighborhoods in Detroit is Belmont due to its high rates of murders per year.

The crime rate there is 14,048 per 100,000 people, which is 664% higher than the national average.

Residents have a 1 in 8 chance of becoming victims of any type of crime.

Gang activity is high and robberies and drug activity are common.

The median home price in Belmont is $29,300.

There is also the Petosky-Otsego neigborhood, and Van Steuben, Fishkorn, Warrendale, etc...

These areas are not comparable in any way to the best zip codes in California...

As Slim Shady once said,,,There is a Reason They Call it Amityville.

Good Luck!

0 Reply
Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
2y
Quote from @James Wise:

Quote from @Travis Biziorek:

Quote from @James Wise:

Quote from @Travis Biziorek:

Hey Jake, I have a handful of Section 8 rentals in Detroit.
There seems to be a lot of negativity in the replies. There are pros and cons to the program but overall I've had a positive experience and none of my properties have been trashed/destroyed by tenants.
Most of the deals I'm doing in Detroit are SFH's in the $70k-$90k all in including a cosmetic rehab. Then you're looking at $1,100-$1,300/mo in rent.

Let's keep these kinds of answers in perspective. A handful of rental properties is incredibly small sample size. The reality is that if you are going to buy Section 8 properties in Detroit, you will eventually deal with difficult tenants at some point or another. It's simply the reality of Section 8 tenants in a place like Detroit.
I agree it’s a small sample size. But this is true about any market.

With a large enough sample size if you buy LTR’s in the best places of California you’ll end up with a squatter you can evict for 12+ months, for example.

Well ya sure, but what I am saying is presenting Section 8 rental properties or Section 8 tenants in Detroit as anything other than high risk is not an accurate representation of reality.

It's like the woke people who claim it's racist to call a crime ridden neighborhood dangerous or high risk or even the ghetto. They get all bent out of shape and say crimes happen everywhere. Sure they do, but there are neighborhoods where the statistical frequency is much higher than others etc.....
Everything is high risk if you go into in blindly. I would never say S8 in Detroit is by default “high risk”. That’s silly.

Seems we won’t agree though so I won’t bother with further responses.
3 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
2y
Quote from @Travis Biziorek:

Quote from @James Wise:

Quote from @Travis Biziorek:

Quote from @James Wise:

Quote from @Travis Biziorek:

Hey Jake, I have a handful of Section 8 rentals in Detroit.
There seems to be a lot of negativity in the replies. There are pros and cons to the program but overall I've had a positive experience and none of my properties have been trashed/destroyed by tenants.
Most of the deals I'm doing in Detroit are SFH's in the $70k-$90k all in including a cosmetic rehab. Then you're looking at $1,100-$1,300/mo in rent.

Let's keep these kinds of answers in perspective. A handful of rental properties is incredibly small sample size. The reality is that if you are going to buy Section 8 properties in Detroit, you will eventually deal with difficult tenants at some point or another. It's simply the reality of Section 8 tenants in a place like Detroit.
I agree it’s a small sample size. But this is true about any market.

With a large enough sample size if you buy LTR’s in the best places of California you’ll end up with a squatter you can evict for 12+ months, for example.

Well ya sure, but what I am saying is presenting Section 8 rental properties or Section 8 tenants in Detroit as anything other than high risk is not an accurate representation of reality.

It's like the woke people who claim it's racist to call a crime ridden neighborhood dangerous or high risk or even the ghetto. They get all bent out of shape and say crimes happen everywhere. Sure they do, but there are neighborhoods where the statistical frequency is much higher than others etc.....
Everything is high risk if you go into in blindly. I would never say S8 in Detroit is by default “high risk”. That’s silly.

Seems we won’t agree though so I won’t bother with further responses.

Lol, my man, I am not concerned with you and me coming to an agreement. I am not interested in changing your mind. You are a biased source. You run a website pitching investors on investing with you in Detroit. What I am doing is making sure all of the people who come across this thread and potentially your website are given accurate information as to the risks of spending their money on this kind of investment.
And I gotta say, i'd really be cautious investing my money with someone who claims that it's silly to think Section 8 tenants in Detroit are high risk. That is a blatant falsehood.
5 Reply
Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
2y
Quote from @Scott Mac:

Quote from @Travis Biziorek:

Quote from @James Wise:

Quote from @Travis Biziorek:

Hey Jake, I have a handful of Section 8 rentals in Detroit.
There seems to be a lot of negativity in the replies. There are pros and cons to the program but overall I've had a positive experience and none of my properties have been trashed/destroyed by tenants.
Most of the deals I'm doing in Detroit are SFH's in the $70k-$90k all in including a cosmetic rehab. Then you're looking at $1,100-$1,300/mo in rent.

Let's keep these kinds of answers in perspective. A handful of rental properties is incredibly small sample size. The reality is that if you are going to buy Section 8 properties in Detroit, you will eventually deal with difficult tenants at some point or another. It's simply the reality of Section 8 tenants in a place like Detroit.
I agree it’s a small sample size. But this is true about any market.

With a large enough sample size if you buy LTR’s in the best places of California you’ll end up with a squatter you can evict for 12+ months, for example.

Not saying that everyone who lives in poor areas is a bad renter, but there seems to be a greater chance of drawing a bad renter in some areas.

If you consider LTR renters in the best zips in Calif. the same as Section-8 renters in Detroit and other monetarily challenged areas the same investment risk....

I am familiar with both areas.

For instance, one of the most dangerous neighborhoods in Detroit is Belmont due to its high rates of murders per year.

The crime rate there is 14,048 per 100,000 people, which is 664% higher than the national average.

Residents have a 1 in 8 chance of becoming victims of any type of crime.

Gang activity is high and robberies and drug activity are common.

The median home price in Belmont is $29,300.

There is also the Petosky-Otsego neigborhood, and Van Steuben, Fishkorn, Warrendale, etc...

These areas are not comparable in any way to the best zip codes in California...

As Slim Shady once said,,,There is a Reason They Call it Amityville.

Good Luck!

Agree, they are not comparable to zips in CA. But the idea is the same.
If you go into these area (minus one or two that you're off on) you are setting yourself up for failure. You didn't do your research and you get the results that one would expect.
To me, this is like looking up areas of CA with the highest eviction rates and deciding to invest there. Why would you do that? Why not just go into a decent area instead?
I'm not comparing CA to Detroit directly. I'm just saying every market has it's risks and if you don't do your research it's easy to blame the market rather than taking accountability.
2 Reply
Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
2y
Quote from @James Wise:

Quote from @Travis Biziorek:

Quote from @James Wise:

Quote from @Travis Biziorek:

Quote from @James Wise:

Quote from @Travis Biziorek:

Hey Jake, I have a handful of Section 8 rentals in Detroit.
There seems to be a lot of negativity in the replies. There are pros and cons to the program but overall I've had a positive experience and none of my properties have been trashed/destroyed by tenants.
Most of the deals I'm doing in Detroit are SFH's in the $70k-$90k all in including a cosmetic rehab. Then you're looking at $1,100-$1,300/mo in rent.

Let's keep these kinds of answers in perspective. A handful of rental properties is incredibly small sample size. The reality is that if you are going to buy Section 8 properties in Detroit, you will eventually deal with difficult tenants at some point or another. It's simply the reality of Section 8 tenants in a place like Detroit.
I agree it’s a small sample size. But this is true about any market.

With a large enough sample size if you buy LTR’s in the best places of California you’ll end up with a squatter you can evict for 12+ months, for example.

Well ya sure, but what I am saying is presenting Section 8 rental properties or Section 8 tenants in Detroit as anything other than high risk is not an accurate representation of reality.

It's like the woke people who claim it's racist to call a crime ridden neighborhood dangerous or high risk or even the ghetto. They get all bent out of shape and say crimes happen everywhere. Sure they do, but there are neighborhoods where the statistical frequency is much higher than others etc.....
Everything is high risk if you go into in blindly. I would never say S8 in Detroit is by default “high risk”. That’s silly.

Seems we won’t agree though so I won’t bother with further responses.

Lol, my man, I am not concerned with you and me coming to an agreement. I am not interested in changing your mind. You are a biased source. You run a website pitching investors on investing with you in Detroit. What I am doing is making sure all of the people who come across this thread and potentially your website are given accurate information as to the risks of spending their money on this kind of investment.
And I gotta say, i'd really be cautious investing my money with someone who claims that it's silly to think Section 8 tenants in Detroit are high risk. That is a blatant falsehood.

What you're failing to recognize is you are throwing out blanketed statements and generalizations.
The world is far more nuanced than that, as is investing in Detroit S8 tenants or any market.
My problem isn't with claiming that some S8 tenants and some areas in Detroit aren't high risk. It's the fact that you make this claim in a generalized way.
1 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
2y
Quote from @Travis Biziorek:

Quote from @James Wise:

Quote from @Travis Biziorek:

Quote from @James Wise:

Quote from @Travis Biziorek:

Quote from @James Wise:

Quote from @Travis Biziorek:

Hey Jake, I have a handful of Section 8 rentals in Detroit.
There seems to be a lot of negativity in the replies. There are pros and cons to the program but overall I've had a positive experience and none of my properties have been trashed/destroyed by tenants.
Most of the deals I'm doing in Detroit are SFH's in the $70k-$90k all in including a cosmetic rehab. Then you're looking at $1,100-$1,300/mo in rent.

Let's keep these kinds of answers in perspective. A handful of rental properties is incredibly small sample size. The reality is that if you are going to buy Section 8 properties in Detroit, you will eventually deal with difficult tenants at some point or another. It's simply the reality of Section 8 tenants in a place like Detroit.
I agree it’s a small sample size. But this is true about any market.

With a large enough sample size if you buy LTR’s in the best places of California you’ll end up with a squatter you can evict for 12+ months, for example.

Well ya sure, but what I am saying is presenting Section 8 rental properties or Section 8 tenants in Detroit as anything other than high risk is not an accurate representation of reality.

It's like the woke people who claim it's racist to call a crime ridden neighborhood dangerous or high risk or even the ghetto. They get all bent out of shape and say crimes happen everywhere. Sure they do, but there are neighborhoods where the statistical frequency is much higher than others etc.....
Everything is high risk if you go into in blindly. I would never say S8 in Detroit is by default “high risk”. That’s silly.

Seems we won’t agree though so I won’t bother with further responses.

Lol, my man, I am not concerned with you and me coming to an agreement. I am not interested in changing your mind. You are a biased source. You run a website pitching investors on investing with you in Detroit. What I am doing is making sure all of the people who come across this thread and potentially your website are given accurate information as to the risks of spending their money on this kind of investment.
And I gotta say, i'd really be cautious investing my money with someone who claims that it's silly to think Section 8 tenants in Detroit are high risk. That is a blatant falsehood.

What you're failing to recognize is you are throwing out blanketed statements and generalizations.
The world is far more nuanced than that, as is investing in Detroit S8 tenants or any market.
My problem isn't with claiming that some S8 tenants and some areas in Detroit aren't high risk. It's the fact that you make this claim in a generalized way.
Yea, but blanket claim I have made is generally true.
1 Reply
Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
2y
In our opinion, the best screening a landlord can do for a S8 applicant is to review where they currently live.
How that place looks is how yours will soon look after they move in.
Logical Property Management4.9453 Reviews
Website View Page
7 Reply
Ian Dyer
Residential Real Estate Broker · Orange County, CA · Member since 2016 · 45 posts · 21 votes
2y
Quote from @Michael Smythe:

In our opinion, the best screening a landlord can do for a S8 applicant is to review where they currently live.
How that place looks is how yours will soon look after they move in.

That is great advice from @Michael Smythe. Knock on their door to ask for whatever paperwork they haven't submitted. You'll see exactly how they are maintaining their current home, which is exactly how they'll maintain the next one.
It sounds time consuming. But not NEARLY as time-consuming as the renovation after a bad tenant trashes their home.
5 Reply
Dale Robert MasonPro Member
Investor · Member since 2022 · 10 posts · 11 votes
2y
Quote from @James Wise:

Quote from @Jake Minyen:

I am considering acquiring properties to be rented under the section 8 program. My thought is, buying between 50-90k livable (or less than 10k rehab) and being able to rent for 2% or at least close to it trumps the cashflow of typical market rentals since HUD establishes max payable amounts depending on number of bedrooms, and is usually higher than market rent rates.

My question(s) are, who has experience in this and what are some good markets to consider? I know it needs to be landlord friendly state but does anybody have specific markets that have performed well with section 8? Markets that have great need for affordable housing. What are some caveats of this? Don't bash me with the standard "they will trash your place". The potential tenants will be screened thoroughly just as I would with a standard market tenant. That is always going to be a risk.

Typically, tenants are only required to pay up to 30% of the rent while the gov pays the remainder. My thought is, as long as what the government pays covers the property expenses and provides some cashflow, the tenant portion is just a bonus.

Anybody with experience in this please share your opinion!

I've made millions investing in Section 8 properties. Biggest thing you need to understand though is it's not "easy money." The majority of these people are absolute animals and they will treat your property as such. Doesn't really matter which city you are in, if you've got $50k-$90k houses with Section 8 tenants in there, your tenant base is made up of total savages. I've seen it in Cleveland, Columbus, Detroit, KC, Indy, Cincinnati, Youngstown, Akron, Canton, Pittsburgh, Memphis and elsewhere.

Frankness is appreciated, calling poor people savages is not. I just wanted to add this to this discussion.
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
2y
Quote from @Dale Robert Mason:

Quote from @James Wise:

Quote from @Jake Minyen:

I am considering acquiring properties to be rented under the section 8 program. My thought is, buying between 50-90k livable (or less than 10k rehab) and being able to rent for 2% or at least close to it trumps the cashflow of typical market rentals since HUD establishes max payable amounts depending on number of bedrooms, and is usually higher than market rent rates.

My question(s) are, who has experience in this and what are some good markets to consider? I know it needs to be landlord friendly state but does anybody have specific markets that have performed well with section 8? Markets that have great need for affordable housing. What are some caveats of this? Don't bash me with the standard "they will trash your place". The potential tenants will be screened thoroughly just as I would with a standard market tenant. That is always going to be a risk.

Typically, tenants are only required to pay up to 30% of the rent while the gov pays the remainder. My thought is, as long as what the government pays covers the property expenses and provides some cashflow, the tenant portion is just a bonus.

Anybody with experience in this please share your opinion!

I've made millions investing in Section 8 properties. Biggest thing you need to understand though is it's not "easy money." The majority of these people are absolute animals and they will treat your property as such. Doesn't really matter which city you are in, if you've got $50k-$90k houses with Section 8 tenants in there, your tenant base is made up of total savages. I've seen it in Cleveland, Columbus, Detroit, KC, Indy, Cincinnati, Youngstown, Akron, Canton, Pittsburgh, Memphis and elsewhere.

Frankness is appreciated, calling poor people savages is not. I just wanted to add this to this discussion.

How many Section 8 tenants have you had live in your properties Dale?
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