All Forum Posts by: Jahangir Hasanov

If you follow " my rules " when renting to ANYONE cash or a govt program. Buy right, RENO right, rent right, all is fine. There is not any more deferred maintenance renting to a govt tenant vs cash.

Hey Bob. I would love to learn few things from you and your approach to the Ohio market. You also mentioned you don’t use brokers. How do you go about finding the properties? Unless you go door to door yourself or use wholesalers. Thank you

1 Vote

Detroit, Michigan

Quote from @Mark Cruse:

It’s a very good program and can be lucrative if the person has the abilities and skill sets to make it work. There are many moving parts that can present massive challenges if not done effectively. However, there are so many here who can testify what a great experience they have had with it. One thing that concerns me is it seems like you could be approaching this from a simplistic mindset. It seems like you observed your friend making out with it, it’s easy, so you will do the same. It’s not easy and can be very involved. Doing it from out of town with no experience can collapse the entire thing if you dont assess reality. It’s so much more than buying any home; have home depot labors fix it; rent to section 8 and collect check to become rich. It can happen but there could be 2 to 3 dozen more things in between you need to be proficient in. You must be prepared from multiple angles and know how to maintain stability. If it was easy and smooth simply collecting checks, everyone would be rich doing the same thing with success.

Hi Mark. Thank you for your response. I understand the risks. I know just because it worked for someone else doesn’t mean it will for me. I’m doing my due diligence. At the end of the day everything is a risk. And nothing is guaranteed, I’m just trying to minimize it with right people ( property managers, contractors, brokers and learning data and markets in those areas.

1 Vote

Detroit, Michigan

Quote from @Nicholas L.:

@Jahangir Hasanov

those low price points are tempting for a reason... probably lots of deferred maintenance and potentially in more challenging neighborhoods.

if you think you're going to buy a random property off Zillow and start cash flowing in month 1 or even year 1... buckle up.

i strongly recommend you start with a house hack locally instead. or... move to one of the cities, roll up your sleeves, and start in person.

https://www.biggerpockets.com/forums/12/topics/1171104-the-m...

Hi Nicholas. Thank you for your response. I’m selling my property this week in NY and doing 1031 that’s the reason I can’t do hacking. Your points are valid. I see a lot of people doing what I’m trying to do buying properties that need a little work in class B and C areas and successfully rent them out for cash flow. I’m trying to do the same and I’m aware of risk.

1 Vote

Detroit, Michigan

Quote from @Bob Stevens:

Quote from @Selina Giarla:

I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.

All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!

Go out of state. I know dozens that live overseas and all across America, including me and do all their business in the Midwest Double digit net caps are the norm. I get deals sent to me daily. I just locked up 7 more SF all will have about 15% or better net caps.

All the best

Hi Bob. I’m looking to buy in Cleveland can you suggest any recommendation's, good realtors or wholesalers? Thank you in advance

0 Votes

Quote from @Arsen Atanasovski:

Travis are you trolling me??? Jk! About classes Detroit is a street by street city not necessarily by class you have class B and a block away is a war zone so you do need boots on the ground for sure DM me or Travis and I give you some guidance but going solo is a little difficult partnering up would be a little easier and less risk but again up to you.

Thank you Arsen. I could be possibly open for partnership. The thing is will be buying properties through 1031 exchange and I don’t know if partnerships would work. I’m really grateful for any guidance you can offer. Thanks again.

0 Votes

Detroit, Michigan

Quote from @Travis Biziorek:

Hey Jahangir, I do a ton in Detroit and have 12-doors there myself. Three of those are rented to S8 tenants.

Finding S8 tenants is definitely doable, but has gotten more challenging as more and more investors seem to be gravitating toward this strategy.

These are all great markets for cash flow and potential appreciation. You can do extremely well if you work with the right folks. I'd be happy to shoot you over some Detroit specific resources if you end up looking at that market.

Hi Travis. And thank you for your insight. I would be really helpful if you can help me with those resources or any recommendations that could guide me in the right direction. Thank you.

0 Votes

Detroit, Michigan

Quote from @Arsen Atanasovski:

I’m a section 8 investor half of those items do not comply, difficult to evict?? Does that mean the city or government can’t pay you rent? Never heard of this never had this happen. Yearly inspections, great I do them 2-3 times a year it’s my property would like to see them and check on them. Have you driven a car and not do an oil change? Of course you don’t get payment until the application and process is complete and approved by the committee then you allow them access and that’s after they paid the SD. Difficult selling? Really? Hi investor, I have 10 vacant homes for sale would you like to give me a “low ball offer”??? Hi investor I have 10 fully leased section 8 tenants oh and btw here is my income statements and all the income from my section 8 properties showing the state of where ever you live depositing into my account, which on do you think you will be better off when time comes to sell???

Hey Arsen. Thank you for your input. Do you have any recommendations for a good realtor or a wholesaler or a property manager that can help me out with this. Also I know there are different Class Areas and that I should avoid anything that’s in Class D area. Do you have any experience with class D S8 investments?

0 Votes

Detroit, Michigan

Quote from @Bruce Woodruff:

Quote from @Jahangir Hasanov:

Quote from @Bruce Woodruff:

You are aware of the hazards of getting involved in S8 housing as a landlord, right?

I’m still researching this. Someone I know owns section 8 properties, he doesn’t have any issues and the rent gets deposited directly to his account. What are the hazards I should be aware of if you don’t mind telling me please?

He's lucky. Only a portion of the rent is covered. And any quick search will give you the info you need. Below is a cut/paste from a site I found. But better yet, do a deep search on this very Forum and see what actual S8 Landlords have said about this.

Rental Pricing Regulations
Risk of Renting in Lower Income Areas
Restrictions of Section 8 Tenants
Don’t Receive Voucher Payment Until Tenant Moves In
HUD Does Not Pay Security Deposits
Annual Property Inspections
Potential for Difficult Tenants
Property Damage Issues
Harder to Evict Difficult Tenants
Full-Paying Tenants May Turn Away
Difficulty Selling Properties to Free Market

Probably he is lucky. He has steady cash flow without any major issues. And he is very happy about his decision. Thank you Bruce for the information provided, yes it makes a lot sense. I will look deeper into this.

0 Votes

Detroit, Michigan

Quote from @Bruce Woodruff:

You are aware of the hazards of getting involved in S8 housing as a landlord, right?

0 Votes

Detroit, Michigan

Hello everyone. I’m new to bigger pockets and in need of advice. I’m new to investing and was looking to invest into 2-4 bedroom houses for Section 8 rentals. I live in NY and was looking in Detroit, MI, Cleveland, OH and Philadelphia, PA areas. Found lots of properties that might be in need of rehab for a relatively low price which seemed like a good deal to me. Question is how hard is to find section 8 tenants in those cities and which areas I should be looking to purchase that are section 8 friendly. Any advise would be greatly appreciated. Thank you.

4 Votes

Detroit, Michigan

All Forum Posts by: Jahangir Hasanov

Jahangir Hasanov has started 1 posts and replied 12 times.

Post: Rental / Section 8 Properties

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Post: Where Are The Deals!?

Post: Rental / Section 8 Properties

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Post: Rental / Section 8 Properties