All Forum Posts by: William Burns

 Thank you Travis. I have a more realistic mindset on what to expect now. 

 Drew I appreciate your well thought out response.

Hi BP Community,

Has anyone here had experience investing in Detroit with Section 8 tenants? Is the program really as problematic as it’s been portrayed? Any insights from your experience, whether positive or negative, would be greatly appreciated.

The attached link explains the current situation with the Detroit Housing Commission (DHC), highlighting that they are severely understaffed and have limited communication with both tenants and landlords. Some landlords report that it regularly takes around six months to start receiving direct deposits from the government. The article quotes: "The DHC regularly takes many months to initiate payments or approve rent increases and rarely responds to landlords’ messages." Additionally, some landlords are still waiting on over $5,000 in payments from the program.

This market is right in my backyard, and it seems like a good place to start, as I can afford to buy homes in the $65,000–$80,000 range and am familiar with the area. The numbers for investing in Detroit look promising, but I am hesitant to proceed with purchasing a property and accepting Section 8 tenants due to the long delays in rent payments.

There are many Section 8 voucher holders looking for homes, and many tenants have shared horror stories about their previous landlords. I want to be a part of this market because I know I can offer tenants a well-maintained, up-to-code home. However, the idea of running a rental business while waiting six months for payments especially with bills still coming in doesn’t seem sustainable.

Can anyone speak from experience in the current market? Was the risk worth the reward in your situation?

- Attached below is the same link in the header

https://outliermedia.org/detroit-section-8-housing-vouchers-...

 Predominantly Detroit area in a specific zip code and certain neighborhoods in Pontiac.  

I have been seeing more opportunities for fix and flips lately. When it comes to financing a flipper home it can be tough. Does anyone have a source for hardmoney or some type of house flipping loan they would recommend?

I have reached out to KIAVI and was denied from their process due to lack of credit history. Normal Conventional loans do not support these types of projects because of the conditions of the homes. 

I have enough capital to finance the upgrades needed & to put 20% down on these home. Also I would be able to comfortably pay a monthly "mortgage" for a 12 month loan as well, while the project is rolling. 

What are some of your recommendations for financing when you do not have 100% of the cash on hand for a deal? 

Randy thank you very much for sharing that experience, it definitely helps to hear your story. 

The yearly inspections seem nice because you can apply for higher a rent amount with tenants from what I have read. 

 Thank you for the response. There are some good areas that I believe are on the up and up here in Detroit. Even with proper screening, you still see dealing with section 8 tenants as being an action not worth the effort?

Hi bigger pockets team, I have been looking at getting into section 8 rentals for around a year now. This will be my first rental property, I currently do not know anyone that owns section 8 properties. My peers have lot of negative things about section 8 but they have no real experience to speak on.

I found a good property that will cashflow well & it currently has tenants occupying the home. I do not like this because I did not screen the tenant but on the positive side the tenant is already living in the home so it is cash flowing which is great. 

Can someone please share their story investing with section 8 tenants? Even is it is good or bad your knowledge is appreciated.