All Forum Posts by: Danielle B.

Everybody likes Dayton! It does seem like a great location btw Cincy and Columbus and probably great for regular rentals. 

Newark and Lancaster weren't on my radar before, thank you!

Quote from @Robert Ellis:

Quote from @Danielle B.:

Considering the following cities in OH to invest in Section 8 Housing:

• - Akron
• - Dayton
• - Toledo
• - Youngstown
• - Canton

For those of you with experience here, can you share the average cost for a single-family house (3 bedrooms +) and the net profit per property per month for Section 8?

Looking for properties under 100k where the net profit per property per month is at least $500. 

 look at newark ohio. forget all these except Dayton. make sure it's built after 1950. ohio is old properties. columbus especially but newark has lots of cheap deals and look at Lancaster. I'd look closer to a stronger market. everything but Dayton is garbage and Dayton feeds off of being close to both city centers of Cincinnati and columbus and they've been tearing down hundreds of houses to create a housing shortage and drive prices up. none of the other cities have those demographics except columbus and Lancaster, Marion, Mansfield, etc are tertiary markets that feed off columbus MSA

Yes, by net profit I mean taking into account all expenses. 
I forgot to mention that I'm only looking at properties that don't need significant repairs - around $10k per property. 
I'm looking at pockets in OH more for the cash flow than the appreciation potential of the property itself. Although both would be nice :) 
Quote from @Michael K Gallagher:

Quote from @Danielle B.:

Considering the following cities in OH to invest in Section 8 Housing:

• - Akron
• - Dayton
• - Toledo
• - Youngstown
• - Canton

For those of you with experience here, can you share the average cost for a single-family house (3 bedrooms +) and the net profit per property per month for Section 8?

Looking for properties under 100k where the net profit per property per month is at least $500. 

 @danielle, yeah I think we'd all like that hahaha!

my first question is define net profit...do you actually meant net profit, aka taking into account all expenses etc? if so that's going to be a deal that needs significant capex improvement to hit those margins.  

if you just mean the delta between your mortgage (are you paying cash or financing?) and rent, that's more doable, but its not what I'd consider a net profit.

Out of the markets you are looking at, personally I'd only give the time of day to Dayton.  Its close enough to central OH that it will eventually get the economic growth we are seeing in cbus, and surrounding counties, and it has a decent employment and economic diversity, ie military, medical, manufacturing, higher ed.  Again nothing compared to cbus, but decent.  

The rest of the markets you mention are heavily dependent on manufacturing and more specifically automotive (unless someone else can prove me wrong which I'm open to!) so from an economic diversity standpoint I'd deprioritize them personally.   

For what it is worth, as a side note, Youngstown is well known for being one of the most violent cities in the country up until recently, and it was historically mob run, i'm not up on the latest organized crime news and such, but again other than the shut down Chevy Cruise plant IDK what they got up there for jobs...

In general when you are dealing with properties in ohio, under 100K you are going to have heavy capex, and generally will be in areas that are challenged and then management will be the make or break factor on the properties.  

Cheap properties are often the most expensive in the long run, and while they may pencil out with a $500 a month net profit, that's only $6K a year in "profit", and that disappears pretty quickly with a couple evictions, some damage to property, and a furnace that goes out.  

Quote from @Danielle B.:

I'm looking to get involved in Section 8 housing out-of-state - in OH. For those who are running successful Section 8 businesses out-of-state, did you start in just 1 state or if the opportunity made sense would you purchase the property regardless of the state?

Self-proclaimed Section 8 guru's online claim to do the latter and then find Property Managers after they purchase the property in whatever state, but I don't know how real that is.

 I bought and sold old houses for 10 years. I'm from Toledo and know most of the turnkey guys. just make sure to buy later than 1950. don't get the knob and tube and plaster and lathe and cast iron sewer lines. understand that most markets that do turn key or section 8 are going to never appreciate like Cleveland or Toledo or tertiary markets like Akron or Cleveland. I'm not an expert in these markets nor turn key but ohio is a great state to invest. our strategy has always been buying below market or building below market