All Forum Posts by: Bryan Melendez

@Bryan Melendez

can you start with a house hack in Florida instead?

it is going to be extremely difficult to buy a property in a market you don't know and don't live in, and operate successfully

for example - don't do this

https://www.biggerpockets.com/forums/48/topics/1137397-balti...

Quote from @Bryan Melendez:

Hello all, my name is Bryan Melendez.

I am new to all thing's real estate, residing in South Florida. After reading several articles and comments, Section 8 has caught my attention for various reasons. My goal is to submit a couple of landlord applications by the end of this weekend however I want to be sure I'm applying to the right states. From what I have gathered Ohio, Pennsylvania, and Michigan tend to be the states that keep appearing as the best spots for potential Section 8 landlords, at this moment in time. Is this accurate?

Any input you guys can provide to a novice in this field, please feel free to reach out!

Thanks in advance.

Hi Bryan, I have plenty of experience with Section 8 tenants in my own rentals here in Columbus OH. There is low vacancy rates, guaranteed rent, and they stay for a longer period. The key is to work with a PM and realtor who can guide you with this process. My best advice is to choose a market that has great macroeconomics. I recommend looking into Columbus OH - lots of population growth, job growth, and major companies building out here like Intel, Meta, Google, Amazon, etc. Happy to connect and answer any questions you may have.

Quote from @Bryan Melendez:

Hello all, my name is Bryan Melendez.

I am new to all thing's real estate, residing in South Florida. After reading several articles and comments, Section 8 has caught my attention for various reasons.

I can't provide much about Pennsylvania or Michigan but I can share some of my experiences about Columbus, OH as a former out of state investor. I personally like Section 8 tenants. They generally stay in place for a lot longer and you don't have to worry as much about late rent. Once you're set up in the system, rental payments are pretty timely. 

The frustrating part can be the onboarding process. That can take longer than most people would be comfortable with on their investment properties but once you're on the books, things tend to run pretty well. Vetting your tenants and making sure the unit is up to the Section 8 standard will be the 2 most important things for making sure you don't run into issues. 
I normally recommend using a Property Manager who works with the program regularly to help navigate the waters. 

Happy to connect and share some additional experiences as a former OOS investor. Good luck on your search!

Quote from @Bryan Melendez:

Hello all, my name is Bryan Melendez.

I am new to all thing's real estate, residing in South Florida. After reading several articles and comments, Section 8 has caught my attention for various reasons. My goal is to submit a couple of landlord applications by the end of this weekend however I want to be sure I'm applying to the right states. From what I have gathered Ohio, Pennsylvania, and Michigan tend to be the states that keep appearing as the best spots for potential Section 8 landlords, at this moment in time. Is this accurate?

Any input you guys can provide to a novice in this field, please feel free to reach out!

Thanks in advance.

 I can only speak to Ohio. I have been investing here since 2017 and it has been a great place to get section 8 rents

@Bryan Melendez although section 8 is a federal program, each office is run by the local jursdiction. In Maryland for example Baltimore county and baltimore city are run by different offices with different rules. 

In my area you dont apply as  "Landlord" once you have a section 8 tennat application they inspect your specific property to make sure it meets there standards. 

In my area section 8 tenants tend to stay longer and in many neighborhoods section 8 pays a higher rent. Not all section 8 tenants are bad as some would have you believe. We havr had very good luck with section 8. 

Columbus, Ohio is a great market to consider if you're leaning towards appreciation. I moved here from Florida after seeing the projected growth. 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.

1st time landlord investing in Class C or possibly Class D neighborhoods renting to section 8 tenants' out of state is extremely tough to do. 

You really need to research the city you need to know every neighborhood understand the city good school districts and bad school districts top employers etc. Then you need to find a amazing real estate agent and property manager. Are you going to fly out to view the property you buy or trust your agent and inspector have them video record a tour? It can be tough you can see houses in Detroit that look like they have been remodeled within the last 3 years but they are trashed and up for sale most likely a section 8 landlord getting a bad  tenant and wants out. I am not trying to scare you, but it is not as easy buying a 80k single family in Detroit and it's going to be a money maker on section 8. You will need to do a lot of research and have an amazing team.

@Bryan Melendez what do you mean by 

     "My goal is to submit a couple of landlord applications" ?

That is generally not how the process of renting to section 8 works. 

I'm a little confused, do you already own in all of those states, or are you applying to each then whichever is deemed best after researching you will buy in? 

Do you have any landlord experience prior? Investment experience prior? 

Some people do extremely well with section 8 but if you are diving head first into it, you may want to start with a traditional rental first to get a feel for it.