New Investor in TROUBLE - Carrying costs since April 2024

[Christian Pichardo]

Hey all, I am new to long-distance real estate investing and probably did everything wrong on my first investment property. 

I bought a 3 Bedroom SFH in Cahokia Heights, IL on April 2024 and it is STILL NOT RENTED TODAY.

I bought for $79k convinced by the Section 8 mentor Tom Cruz to buy from his team and to focus on cashflow vs. appreciation

I went through 3 contractors that all did a subpar job and just barely got it all together

I haven't been able to find an appropriate Property Management team to help on this side of IL

I have it listed for rent (Zillow, Turbotenant, Fb, Craigslist) for about 3-4 weeks now since repairs were done.

If anyone has any suggestions to get this rented ASAP I would greatly appreciate it and any Property Management connections that can help would be amazing as well.

Thank you all for your time and Happy Holidays & Happy New Year

[Marcus Auerbach]

I am generally in camp "seldom sell", but in this case my vote is to liquidate. The combination of OOS + S8 is toxic. I have seen this in Milwaukee too many times, the only way to make it work is VERY hands-on.

If you end up renting it in March for IDK net $200 the property will have lost a LOT more in the next 12 months just in condition vs what it looks like now (assuming that it is freshly painted? 12k rehab does not buy much..)

Selling this type of property is a lot harder than one might think. It is counter-intuitive, but more expensive homes is much easier. The buyer pool is beyond flakey..

Your best bet is a local investor. Or you can try and lease option it, but be sure to mentor your tenant all the way to get pre-approved, otherwise you have an 80% chnace they won't be able to buy it. 

[Mark Cruse]

In many cases I'm a proponent of the Section 8 program and know how to make it be successful and lucrative. However, not sure of all the dynamics here. Its already long distance but if you have no desire to be involved, no boots on the ground in anyway, it may be hard to make it work. Section 8 works best for me when you can place a good tenant in a decent community. I've managed in some of the most hardcore areas and because of this, usually only the bad tenants are there because they can't get accepted anywhere else. They are forced to be there so in a lot of instances you are trying to find the best candidate amongst the vast pool of bottom feeders who already have proven to be such. You re rolling the dice in craps hoping you can fall on the right one. If you have a class C plus or maybe low B area, you can screen to select the best or top end of tenants in the program. If it's a horrible, very high crime area (and that is also relative) and you will never manage any part, in that instance I say run. If not, and this is not the case we can chop it up on other approaches. 

[Kathie Mata]

You can Aways rent the rooms out and add wifi... Im Latina and I know my Latinos always looking for a room to rent! 

[Elizabeth Lazo]

Also try posting on FB Marketplace, I post all my rentals there an gets lots of responses.

[Henry Lazerow]

Lower the price. Truth is sec 8 tenants get to be picky and if area is too bad it will be very difficult to place them. Sell it and don’t ever listen to a guru. Total return trumps cash flow every time and most “cash flow” properties don’t even really cash flow in 2024.

[Anderson Banegas Cerrato]

Christian, first off, I want to acknowledge your determination—you’ve stuck with this even through the tough times, and that speaks volumes about your commitment. Every new investor hits roadblocks, but it’s how you respond that makes the difference.

For renting it out ASAP, have you tried adjusting the rent slightly? Sometimes just $50-$100 lower can spark interest. Also, maybe look into local community groups on Facebook or Section 8 housing boards—they might have tenants actively searching.

As for property management, networking with other local investors could help. Have you reached out to anyone in the Cahokia Heights area to see who they use? I’d love to hear how things turn out—this first deal might be tough, but it’s setting you up for future success!

[Andrew Fletcher]

Hey Christian,

Sorry it hasn't turned out well but I am new to real estate but very familiar with the guru Tom Cruz and I had a few questions,

I noticed you said your property has been vacant. Did you call the housing authority and see what the need for Section 8 vouchers was before purchasing a property in that area? I have called a few housing authorities and learned the application is closed because they have such a need for houses for these Section 8 tenants, and I was wondering if it's the same in Cahokia Heights.

What was the rent for a 3 bedroom sec. 8 tenant in that county? How much was the cash flow of that property? 

Lastly, did you buy his multi-thousand dollar course and do you believe it paid off in the end?

Thanks for the response,

Andrew