Section 8 investing in Cleveland

[Asma Shah]

Hi, I have read posts in a number of forums about section 8 investing in Cleveland. I am a newcomer to the real estate investment scene in the US (moved here in the pandemic), and I wanted to connect with anyone that has experience with Section 8 investments in Cleveland particularly. I am interested in looking at out of state investment opportunities as the high cost of living in NJ really does make it very investor friendly at the moment. I’m looking for information from experienced investors about areas within other cities & states that are promising for such investments. I'm absolutely clueless, and am looking for anyone who is willing to share their experiences, advice, or point me towards resources that could help in understanding the market better. I would be immensely grateful if you could share your insights on what would be absolutely crucial & invaluable to me as I take my first steps on this journey. Thanks so much in advance!

[Frederick Wofford jr]

@Asma Shah

I’m looking for the same info. Following this post!

[Simon Ashbaugh]

Hey Asma, Cleveland attracts Section 8 investors due to affordable properties, high demand for section 8 housing and potentially good rental income. However, it is crucial to analyze potential properties to ensure they cash flow.

This will depend on your risk tolerance and your goals but you should consider starting with a single-family home to gain experience as a landlord and build your network. This way, you can learn the ropes before tackling a larger property.

Also, when investing out-of-state, make sure you establish your Core 4 Real Estate team. This will be the key to achieving your goals.

[Jessica Larson]

Hi Asma, welcome to the Cleveland area! I would be happy to assist with you questions and concerns about Section 8. Sending a connection request now to discuss further!

[Asma Shah]

Quote from @Simon Ashbaugh:

Hey Asma, Cleveland attracts Section 8 investors due to affordable properties, high demand for section 8 housing and potentially good rental income. However, it is crucial to analyze potential properties to ensure they cash flow.

This will depend on your risk tolerance and your goals but you should consider starting with a single-family home to gain experience as a landlord and build your network. This way, you can learn the ropes before tackling a larger property.

Also, when investing out-of-state, make sure you establish your Core 4 Real Estate team. This will be the key to achieving your goals.

Thanks, that information is really valuable. I'm trying to look for a course on how to better understand valuations and also tax liens in different states, so as to form better & tax efficient structures under which to invest in different states.

[Regina Blake]

Hi, yes, Ohio is definitely a great place to invest in Real Estate. People are investing in real estate in Ohio from all over the world. Thanks!

[Gladimir Lobo]

Asma,

We been investing in Cleveland and working with section 8 for over 20 years.  Connect with us to learn more.

[Min Zhang]

Hey Asma! Welcome to BiggerPockets. If you are looking into Section 8, I recommend you check the Columbus market. Any C-class neighborhoods are more geared towards Section 8 and long term renters. Let me know how I can help!

[Samuel Diouf]

Hey Asma! Columbus, Ohio is a great market to consider if you're leaning towards appreciation. Multiple, billion dollar companies are investing heavy in our area, such as Intel, Google, and Amazon. Which will bring plenty of other investors and general business to the area. I moved here from Florida after seeing the projected growth.

[Simon Ashbaugh]

Quote from @Asma Shah:

Quote from @Simon Ashbaugh:

Hey Asma, Cleveland attracts Section 8 investors due to affordable properties, high demand for section 8 housing and potentially good rental income. However, it is crucial to analyze potential properties to ensure they cash flow.

This will depend on your risk tolerance and your goals but you should consider starting with a single-family home to gain experience as a landlord and build your network. This way, you can learn the ropes before tackling a larger property.

Also, when investing out-of-state, make sure you establish your Core 4 Real Estate team. This will be the key to achieving your goals.

Thanks, that information is really valuable. I'm trying to look for a course on how to better understand valuations and also tax liens in different states, so as to form better & tax efficient structures under which to invest in different states.

 You're welcome! Feel free to connect and reach out if you need any help.

[Stephen King]

Hey Asma, Section 8 investing in Cleveland, OH is a great strategy, I have a couple of investors that buy a property a month in Cleveland and Lorrain County. I'm also an investor/lender so I can assist with any questions you might have! 

[Asma Shah]

Quote from @Samuel Diouf:

Hey Asma! Columbus, Ohio is a great market to consider if you're leaning towards appreciation. Multiple, billion dollar companies are investing heavy in our area, such as Intel, Google, and Amazon. Which will bring plenty of other investors and general business to the area. I moved here from Florida after seeing the projected growth.

 Yes, i have been looking at it closely and trying to study the areas in columbus OH as well.

[Asma Shah]

Quote from @Stephen King:

Hey Asma, Section 8 investing in Cleveland, OH is a great strategy, I have a couple of investors that buy a property a month in Cleveland and Lorrain County. I'm also an investor/lender so I can assist with any questions you might have! 

 Thank you Stephen, i'll dm you for more info.

[Harrison Chow]

Quote from @Asma Shah:

Hi, I have read posts in a number of forums about section 8 investing in Cleveland. I am a newcomer to the real estate investment scene in the US (moved here in the pandemic), and I wanted to connect with anyone that has experience with Section 8 investments in Cleveland particularly. I am interested in looking at out of state investment opportunities as the high cost of living in NJ really does make it very investor friendly at the moment. I’m looking for information from experienced investors about areas within other cities & states that are promising for such investments. I'm absolutely clueless, and am looking for anyone who is willing to share their experiences, advice, or point me towards resources that could help in understanding the market better. I would be immensely grateful if you could share your insights on what would be absolutely crucial & invaluable to me as I take my first steps on this journey. Thanks so much in advance!

Hey Asma! Welcome to the BiggerPockets! As an investor myself, I'd highly recommend considering Columbus for Section 8 investments. It's a promising market with great opportunities. Let's connect and I can share more insights and experiences to help you get started!

[Nathan Fisher]

If this is your first investment, do not go with section 8 investing in Cleveland. It is not guaranteed money, the properties are often not in good condition, and CMHA is difficult to work with. The numbers look great. The numbers aren't real

For your first investment, Be boring. Get a B class property with a normal tenant. This will give you basic, reliable cash flow, without tearing your hair out.

[Asma Shah]

Quote from @Harrison Chow:

Quote from @Asma Shah:

Hi, I have read posts in a number of forums about section 8 investing in Cleveland. I am a newcomer to the real estate investment scene in the US (moved here in the pandemic), and I wanted to connect with anyone that has experience with Section 8 investments in Cleveland particularly. I am interested in looking at out of state investment opportunities as the high cost of living in NJ really does make it very investor friendly at the moment. I’m looking for information from experienced investors about areas within other cities & states that are promising for such investments. I'm absolutely clueless, and am looking for anyone who is willing to share their experiences, advice, or point me towards resources that could help in understanding the market better. I would be immensely grateful if you could share your insights on what would be absolutely crucial & invaluable to me as I take my first steps on this journey. Thanks so much in advance!

Hey Asma! Welcome to the BiggerPockets! As an investor myself, I'd highly recommend considering Columbus for Section 8 investments. It's a promising market with great opportunities. Let's connect and I can share more insights and experiences to help you get started!

 Hi Harrison, Yes i'm very much interested in colombus OH as well.

[Jamie O'Connell]

Quote from @Simon Ashbaugh:

Hey Asma, Cleveland attracts Section 8 investors due to affordable properties, high demand for section 8 housing and potentially good rental income. However, it is crucial to analyze potential properties to ensure they cash flow.

This will depend on your risk tolerance and your goals but you should consider starting with a single-family home to gain experience as a landlord and build your network. This way, you can learn the ropes before tackling a larger property.

Also, when investing out-of-state, make sure you establish your Core 4 Real Estate team. This will be the key to achieving your goals.

 I agree with Simon. The other thing to remember is section 8 is great for longterm and guaranteed pay however there are definitely thinks that do get annoying. I have 5 section 8 tenants and each one is very blasé about paying their portion. Some of mine are only $50 so its only $1000 for the year but that $1,000 does mean something and sometimes it comes down to principal. Also the tenants job turnover seems to be much higher. 

I always go with section 8 tenants if I can over regular paying but dont let the sec 8 gurus tell you that everything is always peachy. When you have one tenant not paying their $50 portion it is whatever, but when you have say 6 or 7 and your loosing out on $1000 a month you start noticing it a lot more! 

Just my thought, everything else important Simon points out well, I couldn't deal with it out of state without my team. 

[Vadim F.]

Don't drink the S8 kool-aid. Even though I myself have a S8 rental, what you hear online is completely false. C class and lower areas is only where S8 beneficial and that tenant base can be a headache. You will also need a team that knows how to work with CMHA, which in itself is a huge pain to deal with.

[Brian Jackson]

If you plan on going 35 minutes south to Akron let me know! I can help out with information in that market. Currently have 7 doors in Akron but none are being used as S8. As a realtor I have sold many S8 homes and have worked with plenty of S8 investors in the Akron area. Best of luck on your journey!

[Myles Johnson]

Hi Asma, Section 8 has been good to me. However, getting a good property manager is crucial. In my opinion, it is the most important part starting out. A good PM will be realistic on what to expect from Section 8 and help you identify properties/neighborhoods that will support your goal. Cross check your realtor's opinion with your PM's and you are off to a decent start.

[Joseph Bui]

I've been looking at Cleveland as well. I have 9 doors in Memphis and Detroit and hope to add Cleveland in the near future. I also have section 8 tenants as well and their are definitely pros and cons. Would love to connect and knowledge share if you are interested.

[Michael Smythe]

@Asma Shah check out @James Wise with Holton-Wise.

Their website has a ton of good & bad info regarding S8.

[Ahmed ElTir]

Hey Asma,

I currently have a SFH with a section-8 tenant under an assignment of contract in 44111 in Cleveland. If you're interested in more details, please feel free to call/text me on 860-807-5661

[Bob Stevens]

Quote from @Asma Shah:

Hi, I have read posts in a number of forums about section 8 investing in Cleveland. I am a newcomer to the real estate investment scene in the US (moved here in the pandemic), and I wanted to connect with anyone that has experience with Section 8 investments in Cleveland particularly. I am interested in looking at out of state investment opportunities as the high cost of living in NJ really does make it very investor friendly at the moment. I’m looking for information from experienced investors about areas within other cities & states that are promising for such investments. I'm absolutely clueless, and am looking for anyone who is willing to share their experiences, advice, or point me towards resources that could help in understanding the market better. I would be immensely grateful if you could share your insights on what would be absolutely crucial & invaluable to me as I take my first steps on this journey. Thanks so much in advance!

I have been working in the Cleveland markets for 10 + years with various govt programs, LOVE IT. I know many investors from around the world including many from Ca that have been as well. The govt programs pay much more then cash tenants. I just got 1700 for a 3 br with an all-in price of 75k!! 900 for a 1 br ( All in about 30k) in the hood, NICE ROI!!

Good luck 

[Nicholas Jacob Nowosielski]

Do you guys have an inspector that is well versed in sec 8 and could inspect a few properties for me in Cleveland and make a list of things that need to be done to pass the sec 8 inspection?

[Bob Stevens]

Quote from @Nicholas Jacob Nowosielski:

Do you guys have an inspector that is well versed in sec 8 and could inspect a few properties for me in Cleveland and make a list of things that need to be done to pass the sec 8 inspection?

 Inspector, never, my guys walk it. I have past 100s and 100s 100s of sec 8 inspections never once using an inspector.