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!

[Nicholas Jacob Nowosielski]

Quote from @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. 

Ok great, who’s “your guy”?

[Bob Stevens]

Quote from @Nicholas Jacob Nowosielski:

Quote from @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. 

Ok great, who’s “your guy”?

 One of my contractors, 

[Bob Stevens]

Quote from @Bob Stevens:

Quote from @Nicholas Jacob Nowosielski:

Quote from @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. 

Ok great, who’s “your guy”?

 One of my contractors.

So you have a prop you are thinking about buying. Here a few questions

Who is walking it for you? \

Who told you it's an area you want to be in ?

Who told you the price is good?
Who provided you with the reno budget and do you know if its a fair price?

Happy to help, 

[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!

 Its the same as renting to any tenant, just more paperwork. I have been living OOS for 10+ years doing Sec 8,,, Love it. 15% ++ NET caps based on cash purchase 

Buy right, reno right, rent/screen right, 

[David Leggett]

Section 8 can definitely cause extra headaches like the longer wait times to get a tenant in there, the inspections, and the incompetent CMHA office you can never get a hold of.  There's definitely challenges, but there's definitely tons of demand for Section 8 in the Cleveland market, especially for single family properties. 

Bob is right, you can get some high rent amounts from CMHA, but it's not always guaranteed.  But notwithstanding all the challenges and headaches, this is definitely a great market to do Section 8 rentals from my experience.  And they just increased their rental limits to try and keep pace with cash tenants, so if Section 8 is part of your strategy, now is a great time.

[Bob Stevens]

Quote from @David Leggett:

Section 8 can definitely cause extra headaches like the longer wait times to get a tenant in there, the inspections, and the incompetent CMHA office you can never get a hold of.  There's definitely challenges, but there's definitely tons of demand for Section 8 in the Cleveland market, especially for single family properties. 

Bob is right, you can get some high rent amounts from CMHA, but it's not always guaranteed.  But notwithstanding all the challenges and headaches, this is definitely a great market to do Section 8 rentals from my experience.  And they just increased their rental limits to try and keep pace with cash tenants, so if Section 8 is part of your strategy, now is a great time.

 100% however they have been great with me over the last 1 or two years with getting inspections faster. I do prefer EDEN, they are about 2 weeks Done. They just gave me $905 (why not 900 lol) for a 1 BR in my 7 unit across from the RTA in East Clev, whoop , cash would be about 650, oh and 1700 for my 4 BR in Lee Harvard ,