All Forum Posts by: Brandon W.

Hello BP community,

I am still in the "learn and self-education" phase of my REI journey. I've been talking with a co-worker about REI and different sectors and niches and we got on the topic of section 8. He told me there's a strong demand for section 8 housing and simply not enough supply out there; That as long as you meet the requirements of the program, you're basically guaranteed tenants.

Now I don't want to get into the pros/cons of section 8, that's not what this is necessarily about.. Rather, this caught my interest because, here in Dayton/Cincinnati area, there's a healthy amount of very cheap SFR properties ($10-50k). Some need more work than others but I can find them in conditions very close to what Section 8 requires already. I also found where I believe section 8 sets the "fair market rent" for whatever county you live in. For Butler county, it's $1178 for a 3BR home which seems high to me. In my city (in Butler county) I've found that rent for an average 3BR is at least a $300-$400 less than that...

My questions are:

1.  Is there really a strong demand for section 8 housing (at least in the Dayton/Cincinnati area)?  Would I have any problem attaining and retaining tenants assuming I meet section 8 minimum requirements?

2. Is this a smart strategy? Buy very cheap SFRs, fix up to meet Section 8 requirements and get Section 8 fair market rent (or what I believe is above market rent). Does anyone else do this and have success? I don't think I'd have any problem getting 1-2% of ARV in rent a month.

3.  Am I missing something?  Are there holes in my logic?

Thank you greatly in advance,

Brandon W.

Any recommendations for an agent serving Dayton and/or Cincinnati?  My last realtor was horrendous.

Welcome fellow Brandon! Lots of Brandons here I'm noticing. I'm located between Dayton and Cincinnati. I'm also just starting out and I've been busy in the research/learning phase of REI before I jump in. I'm really excited to get started, as I'm sure you are.

Maybe I'll see you at the Dayton meet-up next month?  Here's the link for info:

https://www.biggerpockets.com/forums/521/topics/592347-dayton-rei-networking-august-13-2018

Welcome and let me know if I can help in any way!

Brandon

Congratulations and good luck!  Make sure to report back with your progress. 

Brandon

Thanks @Darrin Carey. I should be able to get to $20-25k by the end of the year. I think until then I'll continue to work on REI education and cutting personal expenses.

Brandon

@Darrin Carey, Thanks for the quality feedback!  Do you have a general idea of how much capital I should be planning to save for before jumping in?  I know that's a tough question and varies based on a lot of things but what's a good ballpark estimate from your experience in the Dayton area?

I didn't mention this but I probably should have- I've currently been living in a house we bought a year ago.  We did a minor rehab on it over the past winter and I'm hoping we'll make a little profit ($10k) when comes time to sell.  This allowed me the opportunity to learn general home ownership rehab, maintenance, repairs, etc.   Are you suggesting I sell this house now and buy another to do another minor rehab before moving south?  That's an interesting idea I haven't thought of.

I will certainly be in attendance at the next meet-up.  I've already signed up!  Thanks again.

Brandon

Hello BP Community! I recently found BP through podcasts and it is exactly what I’ve been looking for. I’m 28, finished grad school in 2015 and have been working full time for the last few years. In the past 3 years it’s become blatantly obvious I just can’t swallow the idea of working 40 hrs/week, 52 weeks a year, for the next 30+ years to simply retire and then explore other life opportunities at the ripe age of 60. The last few months I’ve been addicted to the thought of FI and early retirement and all the opportunities that come with it. So onto the questions.. I have roughly $10-15k of investable money that I’m comfortable using to explore new opportunities. I’m not sure how exactly I want to use it yet but I know it will be REI related- flipping, rentals, etc. the dilemma is I think I’d like to move south in the next year or so. I’m currently located in Dayton Cincinnati but always loved the southern climate. So what would you do if you were me? Can’t decide whether I should save more before moving to get a good investment property later or try to find something now? Is $10-15k enough to do anything with now? I don’t have any debt other than my current mortgage. Also should note, I’m a veteran so I do have the VA loan I could use to put $0 down. Maybe get a property with $0 down VA loan and use the $10-15k to use to rehab? Im no contractor but I’m decent with general paint, plumbing, electrical, etc. Really not sure what to do here. Appreciate any advice you have. Happy to be here and excited to get started on this journey. Definitely planning on attending the next meet ups in Cincinnati and Dayton. Thanks in advance! Brandon

Congrats Doug!  Can’t  wait to see some progress pics!  Keep me posted. 

Brandon