Changing Strategy to Subsidize renting

[Robert Carl]

Im a Baltimore city landlord. Im invested in what I called the normal parts of the city, which about 60% or more, not the trendy areas. The normal parts of Baltimore city is either violent crime or just trash, vacant houses, and dirty. My properties are in areas mainly where it's just dirty and vacants houses. Not really any violent crimes.

  I invested in the best area I thought that I could afford and had knowledge about. My strategy was to do market rents and improve the area. The improvement of the area would allow me to raise rents and sell properties for higher prices. This has not really worked.

Its hard to get good market renters, Im surrounded by slumlords, and the city is the biggest slumlord. I have been to many REI groups and met few landlords in the not trendy/Downtown Baltimore city. Many investors we not even deal with Baltimore City. The few that I have met that are good and successful mainly do subsidize housing. They say this is the only way they would invest in Baltimore city or be successful in these areas. Also Baltimore city has just reopened their Section 8 housing list again. Now adding these factors together Im switching to subsidized rent also.

Any thoughts? Thanks in advance.

P.S. If you claim to be in Baltimore be able to show me a building you own. No I use to or I invest all over.

[Ben Leybovich]

I've written about this on the blog.  Fundamentally, people are people - period!  Section 8 or not doesn't matter.  I've heard of doctors in up-scale rentals burn holes in laminate floors 2 foot in diameter. 

Location, property amenities, and price-point are the natural selection drivers.  Some of my best tenants are Sec 8.  But, in order to afford my units, they need a job - clue...  And another clue - I have subsidized and un-subsidized living side by side in same location, which means it's good enough!