All Forum Posts by: Travis Biziorek

Hey Megan, I'm glad you're interested in Section 8 investing—it can be a very rewarding niche, but it’s definitely got its share of challenges. I’ve been renting to Section 8 tenants for years, particularly in Detroit, and I’m happy to share my experiences and help answer your questions.

1. Is investing in Section 8 housing a good idea?
   Yes, but it really depends on what you're after. Section 8 comes with guaranteed rent payments straight from the government, which is a huge perk. It's reliable cash flow, and it's why many landlords get interested in the first place. There’s also a lot of demand for these rentals, so filling vacancies usually isn't a problem, which means fewer months with no rent coming in. But there are also some real challenges, like dealing with lower tenant quality on average, the extra red tape, annual inspections, and the longer time it takes to get tenants placed compared to the open market. The trade-offs are real, but for consistent cash flow and the right landlord, it can be an excellent strategy.

2. What’s the best way to start?
   There are two main approaches to getting started with Section 8. You can either buy a rental property that already has a Section 8 tenant in place, or you can place a Section 8 tenant yourself. Each approach has its own pros and cons. If you buy with a tenant in place, you save yourself the hassle of paperwork and inspections upfront, but you miss the chance to screen the tenant yourself—which can be risky. The screening process is crucial because tenant quality can vary widely, even under the Section 8 program. Placing your own tenant takes longer (usually 3-4 months with inspections), but it gives you full control over who lives in your property, which is a huge plus in my book. In Detroit, for example, I like to focus on strong C-class areas where Section 8 demand is high, but I still get some quality control over tenants.

3. What’s the process like for becoming a Section 8 landlord?
   The process is pretty simple, but it does involve extra steps compared to a traditional rental. You market your property like you would any other rental—put it up on Zillow or AffordableHousing.com, and make sure to note that you accept Section 8 tenants. Once you find a potential tenant, you have to go through a Housing Quality Standards (HQS) inspection, which can take a while and may require some repairs or tweaks to pass. Then, there’s paperwork to finalize with the local housing authority, and finally, you start getting rent payments. The first payment can take a while to come through, but once it does, the rent is very consistent.

4. What challenges have you faced?
   One big challenge is the inspection process, which can feel like a hurdle. The housing authority can be very strict, and even minor issues can delay the process. Another common challenge is the tenant quality. You’re generally working with tenants who, by definition, have lower income and often less favorable credit. That doesn’t mean they’re bad tenants—many are just trying to provide stability for their families—but it does mean you need to be extra diligent with screening. You can’t just rely on the voucher and guaranteed rent; you have to make sure the tenant will take care of your property. If you don’t, you might end up spending more on repairs than you’re making in rent.

5. Tips for beginners?
   Start by networking with other Section 8 landlords. Whether it’s local investor groups, forums, or BiggerPockets, connecting with folks who've been through the process is invaluable. Also, remember that screening is key. The guaranteed rent is great, but don’t let that lull you into taking any tenant with a voucher—look at their rental history, employment, credit, etc. Also, be prepared for paperwork and some level of bureaucracy, but keep in mind that if you’re willing to work through it, the rewards can be substantial. In my own experience, Section 8 tenants tend to stay longer, and fewer vacancies mean less turnover cost and hassle, which is a huge win.

Section 8 isn’t for everyone, but if you want reliable cash flow and are willing to do the upfront work, it can be a great way to invest in rental properties. Just make sure to weigh the pros and cons carefully—like any investment, understanding the trade-offs is key to making it work for you. Good luck, and feel free to reach out if you have more questions!

Thanks, Jonathan. 

I keep waiting for a catalyst for San Francisco much like I saw with Detroit. But waiting for that might make you too late. I think there needs to be a change in leadership and a pro-development or up-zoning attitude. And we may be seeing that (although I'm not as plugged in as I need to be).

The DADU sounds great! You'd consider moving into it rather than just renting it out? I'm intrigued it doesn't have a stove. Seems like it could be pretty easy to throw in an electric one, no?

Appreciate the props on being a Detroit resource. The market there has been exceptional for me, but not without its challenges. And when I speak with people (or write on my blog) I'm always VERY transparent about the unique challenges of the market there.

For 2025, my main goal is to stack up cash—ideally $500k or more. With that capital, I’m planning to either dive into a larger multifamily project in Detroit or grab a small duplex or quad in San Francisco.

To reach that $500k mark, I’m leaning on the power of cash-out refinancing. I’ve been investing in Detroit for several years, and some of my properties have built up significant equity. Just recently, I completed a cash-out refi on a duplex I picked up in 2019, and pulled out $103k. I've got a few more properties with a similar plan in mind—refinance, extract the equity, and use that to build toward my bigger target.

The goal for me this year isn't just to buy more doors, but to make a strategic leap into larger-scale projects. Detroit has been great for cash flow, but now I’m looking at how I can scale up. Multifamily is top of mind since it provides a mix of efficiency and long-term growth. On the flip side, a duplex or quad in SF would be a strong move for appreciation and diversification. I think San Francisco might be a bit undervalued right now, which makes it an interesting opportunity. Plus, years down the road, I plan to split my time between SF and Detroit, so this would be a step in that direction.

Another major focus for 2025 is a personal project: we recently completed a large ADU build at our primary residence here in California. We're moving into the ADU ourselves starting in January so we can remodel our main home. That remodel is going to take both time and capital, so it's a key part of my plans as well.

Would love to hear how others are approaching similar goals—anyone else tapping into equity or gearing up for larger projects? And if anyone's considering doing some Detroit deals, I'm always happy to chat!

 I appreciate that, Greg. Happy to talk any time.

Hey Greg,

With $750k to work with, you're in a great spot to make a serious move towards financial freedom through real estate. The right strategy for you is going to depend on a few things, like your risk tolerance and how much cash flow you need to hit your goals. Since you're looking to transition out of the corporate world over the next 3-5 years, I can share what worked for me.

I started with a lot less capital—around $250k—and used the BRRRR strategy in Detroit. Over two years, I built up 12 doors, which now generate about $100k in net income annually. The great thing about BRRRR is that it allows you to keep recycling your initial cash, which makes it easier to scale quickly while building cash flow and equity.

Flipping homes, in my opinion, is more of a job than an investment. It could be a solid route once you've transitioned away from your corporate job, but it's tough to juggle flipping while working a demanding W2. If I were in your shoes and aiming to build a portfolio while still working, I'd focus on strategies like BRRRR that let your capital work for you while building both cash flow and long-term value.

Happy to discuss more if you have specific questions or want to explore Detroit as an option!

—Travis

Hey Anna,

If you're exploring Section 8 investing, I'd highly recommend giving Detroit a look as well. I have a few Section 8 properties in Detroit myself, and it's been a great market for cash flow. The price points are still affordable compared to other metros, and the demand for rentals is strong—especially with the Section 8 program.

• Section 8 Investing in Detroit: https://www.buyingdetroitrealestate.com/section-8-investing/
• Detroit Real Estate Investing: https://www.buyingdetroitrealestate.com/detroit-real-estate-investing/
• Detroit Property Appreciation: https://www.buyingdetroitrealestate.com/detroit-property-value/
• Population Growth in Detroit: https://www.buyingdetroitrealestate.com/detroit-population-growth/

Outside of my own investments, I also help other investors through my team in Detroit—we source deals, manage rehabs, and handle property management. If you're interested in exploring Detroit further and are a cash buyer, feel free to schedule a call here: https://calendly.com/tbiziorek/20min-detroit-re-chat

Happy to answer any questions you have about Section 8 investing in Detroit!

—Travis

Generally, no.

I've done one myself so I know the process and ins-and-outs pretty well. 

There are some exceptions, but I tell most people to avoid it. I've got a great article about the pros/cons if you want to DM me I can send you the link.

Hey Raju,

If you’re looking for strong appreciation potential without going cash flow negative, Detroit should be at the top of your list. Appreciation here has been rapid over the last few years, and rental demand is growing fast. Population in Detroit is increasing again after decades of decline, which is a fantastic signal for long-term value. I've written some great articles on the Detroit market:

• - Appreciation: https://www.buyingdetroitrealestate.com/detroit-property-value/
• - Population Growth: https://www.buyingdetroitrealestate.com/detroit-population-growth/
• 
  - General Detroit Investing: https://www.buyingdetroitrealestate.com/detroit-real-estate-investing/

The Detroit market is still affordable compared to many other major metros, meaning you can get in with a reasonable purchase price and still cash flow—even at today’s rates. 

I’ve found a lot of success investing here myself, and I’ve also helped other investors set up BRRRRs and long-term rentals in the area.

Outside of my own investments, I also help other investors through my team on the ground here—we source deals, handle rehabs, and manage properties after the renovations are done. We primarily work with cash buyers, but if that fits your criteria and you want to chat, here’s my Calendly link: https://calendly.com/tbiziorek/20min-detroit-re-chat

Happy to dive deeper if you’re interested!

—Travis

Hey Matthew,

I work a lot in the Detroit market, specifically on BRRRR projects and with Section 8 tenants. My team on the ground there handles everything from sourcing deals to renovation, and we've worked with hundreds of investors each year to make these properties cash flow.

We’ve built up some solid relationships in Detroit—whether it’s general contractors, agents, or property managers who understand the ins and outs of Section 8. I started investing locally and have kept expanding after moving out of state, so I’ve got experience navigating the challenges that come with investing from a distance too.

Detroit has its challenges but also some of the best potential for cash flow combined with affordable entry points. If you have specific questions or want to get into more detail, I’m happy to help.

Hey Steven,

Personally, I like doing BRRRRs in Detroit—that's my market and where I’ve put my own money to work. Detroit offers strong cash flow, appreciation potential, and affordability, especially if you’re interested in long-term holds.

That said, where to invest ultimately comes down to your goals, experience, and where you are on your journey to financial freedom. Are you looking for cash flow right away, appreciation over time, or a mix? Also, what's your risk tolerance and how hands-on do you want to be?

Without more details about your specific goals and experience, it's tough to give real tailored advice. But feel free to share more if you’re comfortable—happy to give some more insight.