All Forum Posts by: Stefano Grottoli

Look at it from a perspective of even if your tenant is sec8, majority of the time they still have to pay 30% of the rent. On $1550mo that is almost $500mo plus utilites. Take into consideration that that Cleveland is one of the poorer areas in the country, a $100mo difference can be huge. So you as an owner, would you be willing to ask for less to have your property rented quicker and "lose" the extra $1200 or so per year or would you rather lose that $1200 per month because your property is sitting vacant.

In regards to demand, Cleveland is one of the top Sec8 markets out there.

are all the 32 listings 3bedroom units? 

Section 8 demand in Cleveland is through the roof, but unfortunately they don't actually pay that amount.

When you say 4 of the 32 available properties, are you looking at only Section 8 properties?  There must be more than 32 properties in your area.  Section 8 properties are a different animal than tenants with Section 8 vouchers.

Remember, prospective tenants with vouchers can live anywhere.  Most residents are going to look for the best value for their voucher.  If they can find a gorgeous 3BR in a good location for $1550 nothing comes out of their pocket, why would they go to a crappy property for $1550.  

Personally, I wouldn't buy if the deal does not make sense at market rate pricing.  Government programs can change with the stroke of a pen, but the market moves more slowly.  If you buy a deal that makes sense at market but then you decide to take Section 8 and rent it for more, that is icing on the cake.

 @Stefano Grottoli all the $1550 means with CMHA is they will pay up to that amount within Cleveland city limits. A 3br home on the east side will be less per month vs a home on the west side. 

I spoke to several tank removal companies.  Almost all of them said that they legally have to do soil testing.  I found one company that said "wellll really.... its up to you if we test.... but if there is a big leak we have to report it.... but we won't report any holes in the tank....."  Seemed like they were willing to look the other way, but even this company said to try do do everything before closing.  Spoke with lawyers, oil companies, and more.  Pretty much everyone said it's not worth the risk.

So what happens with properties like this in NYC?  Do they stay on the market forever?  Do they get bought by people who don't realize what they may be getting into?  Or do they get snatched up cheap by investors who "know a guy"?