Section 8 in VA, DC, and MD. Seeking an experienced Real Estate Agent

[Amandeep Singh]

Hi everyone. Does anyone have experience with section 8 in the VA, DC, and MD area? My father used to buy properties in Baltimore for 10-40k each with a monthly income of between 1k-1.4k. Is this even possible anymore? I was interested in learning more as I'm just starting out. I've posted in the forums before and much of the advice i got was aimed towards using leverage, which I am against. I want to own out right and collect 100% profit for my properties. Section 8 seems like a good start, I am in no rush. Thanks for reading, reach out directly if you would like.

Additionally, seeking a real estate agent in the Washington DC and surrounding areas to help put together a realistic strategy.

[Russell Brazil]

Quote from @Amandeep Singh:

Hi everyone. Does anyone have experience with section 8 in the VA, DC, and MD area? My father used to buy properties in Baltimore for 10-40k each with a monthly income of between 1k-1.4k. Is this even possible anymore? I was interested in learning more as I'm just starting out. I've posted in the forums before and much of the advice i got was aimed towards using leverage, which I am against. I want to own out right and collect 100% profit for my properties. Section 8 seems like a good start, I am in no rush. Thanks for reading, reach out directly if you would like.

Additionally, seeking a real estate agent in the Washington DC and surrounding areas to help put together a realistic strategy.

 You do know the average price in DC is approaching $800k. That's a pretty big barrier if someone is intent on a cash only purchase.

[Amandeep Singh]

Thank you for the response. I am aware of the bottom end of DC's average prices. My post is specifically speaking to Section 8 and in that price range I would expect townhouses/row houses. 

[Jack Seiden]

Quote from @Amandeep Singh:

Hi everyone. Does anyone have experience with section 8 in the VA, DC, and MD area? My father used to buy properties in Baltimore for 10-40k each with a monthly income of between 1k-1.4k. Is this even possible anymore? I was interested in learning more as I'm just starting out. I've posted in the forums before and much of the advice i got was aimed towards using leverage, which I am against. I want to own out right and collect 100% profit for my properties. Section 8 seems like a good start, I am in no rush. Thanks for reading, reach out directly if you would like.

Additionally, seeking a real estate agent in the Washington DC and surrounding areas to help put together a realistic strategy.

So 1st off all, D.C. used to have areas that paid more than market rent for a section 8 tenant, that’s now over, so tbh I wouldn’t really care one way or the other if a tenant is section 8, as far as the market, it’s gonna be impossible to get anything remotely approaching the return your father got in Baltimore both because dc is a different market and frankly the market has changed even in Baltimore. If you want to invest in d.c. proper I would say the best argument is prices have fallen pretty substantially in certain sub markets and certain assets classes (mainly condo and commercial) however there is certainly risk it could get worse alongside upside it could get better, if your buying in the dc suburbs, you are buying for stability and honesty should probably be benchmarked against a bond or a safe asset like that.

[Mark Cruse]

I suspect this is a one and done post like the rest, but if not, this is a first great move. You need to come to a place like this and start learning. You have tons of learning to do, and you have to have a basic concept of real estate investing. You talk of the bottom end of DC, whatever that means. The top, bottom, middle of any part and any place in DC, you will NEVER find a 40k townhouse or condo. Take that back; you may find an efficiency crack house that´s a boarded up condo with mold for that price (maybe). Second, you have to know the areas you want to invest in. DC and Baltimore are nearly opposite in every way you can think of. You have to understand all characteristics of places you are looking at. Third, you have to adjust to the times. Because Daddy did something one specific way during the Reagan administration, the real estate market changes frequently. Understand what it all means. The model he used may not work. See what it is, then adjust. What you are talking about can still be possible in the Baltimore region but you need to hit the ground and unpack it all. Be open to other approaches instead of focusing on Section 8. Evaluate it all then see how it pans out. If you come back, we are here for you. Good luck. 

[Amandeep Singh]

I appreciate the feedback, Mark. I agree, there is a lot to learn and that's why I'm here. The "bottom end" of DC was more about finding affordable options in the DC area. I may have better luck in Baltimore with the criteria I've set for myself. My post summary may not have been clear, but I'm looking in either DC, MD, and/or VA with that price point and Section 8. The plan executed by my father is only about 15 years old, though I also know the market changes have been crazy lately across the board, so I'll look into current strategies. I'm interested in Section 8 due to the dependency of government money versus a Tenant. I've read some great posts here where property owners do their due diligence to avoid the common issues with Section 8 Tenants and its worked for the owners.

Since I've got you looped in the thread, do you have experience with Section 8? Any advice on building such a portfolio?

[Mark Cruse]

Quote from @Amandeep Singh:

I appreciate the feedback, Mark. I agree, there is a lot to learn and that's why I'm here. The "bottom end" of DC was more about finding affordable options in the DC area. I may have better luck in Baltimore with the criteria I've set for myself. My post summary may not have been clear, but I'm looking in either DC, MD, and/or VA with that price point and Section 8. The plan executed by my father is only about 15 years old, though I also know the market changes have been crazy lately across the board, so I'll look into current strategies. I'm interested in Section 8 due to the dependency of government money versus a Tenant. I've read some great posts here where property owners do their due diligence to avoid the common issues with Section 8 Tenants and its worked for the owners.

Since I've got you looped in the thread, do you have experience with Section 8? Any advice on building such a portfolio?

 Sounds good. If you are very serious there is no better place to learn. People here want you to win and most dont want money from you. For the price points you expressed it would have to be either Baltimore or you would need to go well over an hour from the DC region. Yes, I have experience with Section 8. I currently have some in my portfolio. The best advice I have for section 8 is to understand the community you will be serving and have some knowledge of the culture. People like that check but in some instances it comes with more challenges and headaches. It takes experience. Once you know your community and culture its crucial that you attempt to maintain a level of mutual respect. Id try one out if this is the model you chose and see how it goes. It can go a lot smoother if you hire a credible and experienced PM. However, good PMs can be selective in neighborhoods they rock with. Good luck! 

[Amandeep Singh]

Quote from @Mark Cruse:

Quote from @Amandeep Singh:

I appreciate the feedback, Mark. I agree, there is a lot to learn and that's why I'm here. The "bottom end" of DC was more about finding affordable options in the DC area. I may have better luck in Baltimore with the criteria I've set for myself. My post summary may not have been clear, but I'm looking in either DC, MD, and/or VA with that price point and Section 8. The plan executed by my father is only about 15 years old, though I also know the market changes have been crazy lately across the board, so I'll look into current strategies. I'm interested in Section 8 due to the dependency of government money versus a Tenant. I've read some great posts here where property owners do their due diligence to avoid the common issues with Section 8 Tenants and its worked for the owners.

Since I've got you looped in the thread, do you have experience with Section 8? Any advice on building such a portfolio?

 Sounds good. If you are very serious there is no better place to learn. People here want you to win and most dont want money from you. For the price points you expressed it would have to be either Baltimore or you would need to go well over an hour from the DC region. Yes, I have experience with Section 8. I currently have some in my portfolio. The best advice I have for section 8 is to understand the community you will be serving and have some knowledge of the culture. People like that check but in some instances it comes with more challenges and headaches. It takes experience. Once you know your community and culture it’s crucial that you attempt to maintain a level of mutual respect. Id try one out if this is the model you chose and see how it goes. It can go a lot smoother if you hire a credible and experienced PM. However, good PMs can be selective in neighborhoods they rock with. Good luck! 

Extremely valuable point, “understanding the community I’ll be serving”. Upper MD seems to be the honeypot. I’ve considered other locations in further out states but man, the thought of having to travel out of the state for an initial few properties which won’t be locally managed seems like a headache this early on. Thank you for the insight everyone. I’ll keep this in mind as I continue the journey. If anyone has local agents in the area who specialize in this please do let me know. 

[Marian Huish]

I’ve got a couple of options that may work for you if you would like to reach out @Amandeep Singh-  not section 8 but great cashflow with an affordable entry point in DC.  Connect & DM me.

[Ned Carey]

@Amandeep Singh relative to other areas Baltimore is still less expensive and the rents are still higher relative to the cost to purchase. However prices have gone way up due to the strong market. There is a lot of competition driving prices up. 

You can still find good cashflowing deals in Baltimore but nowhere near what your father did. Most of my portfolio is section 8. It is more hassle and you have to screen your tenenats well. It will take twice as long to rent your property due to the section 8 bueracracy but our tenants have stayed longer. Baltimore has a lot of rough neighborhoods and it can sometimes change block by block. You need to actually go there to learn where to invests\ and where not to. 

Good luck