Start to invest in Cleveland

[Sergio Diaz]

Hi, I am an out state investor. Currently have one property on a different state. Prices are high where I live, so I want to try Cleveland market. My focus is to buy properties that can be rented on Section 8. I need to build a team, agent, lenders, etc. I read on a post that is difficult to finance properties under 100K. That is new to me, as the property that I bought was 123K. I also check the Ultimate Guide to Grading Cleveland Neighborhoods, advising to stay in C and D neighborhoods. 

Any advise helps, as I am already looking for properties in Cleveland.

Thanks

[Andrew Weiner]

I think that @Shane Kelly is right to stay away from the bottom of the barrel even if you are accepting section 8.  There is HUGE demand for section 8 in the suburbs but as you go to less desirable areas the demand does fall off and tenants want a nicer home if they are settling on the neighborhood.  Also single families that accept vouchers move faster than multifamily.  More for you calculation is that you do have to pass the section 8 inspections which usually aren't over the top but if there is a lot of deferred maintenance then you should budget for some extra repairs after inspection.  Last point (I think) is that the time to move in a tenant with a voucher is longer due to the submission of their packet to the housing authority, approval and rent determination, and then inspections.  This can be a 10+ week process.  

All that being said I do own and have bought properties with the intention of renting to section 8 tenants, the consistency of payment is usually higher and in many cases the rent itself is higher.  As long as you know what the process is at the front then you can do very well with this strategy.