Starting out with investing in Section 8

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Starting out with investing in Section 8

Anna BeePro Member
Member since 2020 · 38 posts · 17 votes

I'm very interested in investing in Section 8. However, because of the prices in my state, I am forced to explore other states. Ohio caught my attention as one of the states where I could potentially invest. Are there any investors outside Ohio state who have experience investing in Section 8 in Ohio and are willing to share their experience?

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1y

@Anna Bee go check out @James Wise Youtube channel about S8 tenant evictions before you listen to the "gurus" promoting S8 tenants as the cureall to Class C rent payment challenges.

It CAN be a good program, but it's only a question of WHEN you will get a bad S8 or any other Class C tenant that will cause thousands in damages.

BTW: The whole Midwest offers this.

[email protected]248-209-6824
Logical Property Management4.9458 Reviews
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  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    1y

    Hi @Anna Bee! While I have several clients that have many Section 8 rentals, they all live in the markets/cities where their Section 8 rentals are located. Section 8 rentals would be the last type of property investment I'd recommend for a 1st time investor and even worse, doing it from out of state. Section 8 rentals can be very Property Management intensive, and a "bad" tenant can cost you thousands of dollars in damage very quickly. 

    If you still really want to invest in OOS S8 properties, I'd recommend looking to invest with someone who already has S8 rentals as a Limited Partner (LP) in a market you like to visit or have family/friends that live there, but I'd only do that with someone you know/trust.

    Lastly, you may check out Mike ("Mr. Section 8") Curadossi's BiggerPockets profile: 
    https://www.biggerpockets.com/users/mike04563#0

    [email protected]
    1Reply
  • Aristotle Kumpis
    Specialist · Long Beach, CA · Member since 2011 · 877 posts · 398 votes
    1y

    I personally own a few rentals that have section 8 tenants. I love the program. They tend to stay for 4-5 years, which helps reduce your turnover costs. Any tenant can damage your property, and the program gets a bad rep for that. It can take 60-days to receive your first rent check after they move in. And they need to do their own inspections before the tenant moves in. So you do need a good manager that knows how it works. I do work with a great PM in Cleveland that works with section 8. You can always talk with them more in detail.

    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    @Anna Bee go check out @James Wise Youtube channel about S8 tenant evictions before you listen to the "gurus" promoting S8 tenants as the cureall to Class C rent payment challenges.

    It CAN be a good program, but it's only a question of WHEN you will get a bad S8 or any other Class C tenant that will cause thousands in damages.

    BTW: The whole Midwest offers this.

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
    2Reply
  • Account Closed
    Realtor · Cleveland, OH · Member since 2023 · 340 posts · 215 votes
    1y

    Hi, yes Ohio is a good place to invest in real estate. Please reach out if you have any questions. Best Wishes!

    1Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    1y
    Quote from @Anna Bee:

    I'm very interested in investing in Section 8. However, because of the prices in my state, I am forced to explore other states. Ohio caught my attention as one of the states where I could potentially invest. Are there any investors outside Ohio state who have experience investing in Section 8 in Ohio and are willing to share their experience?


     Cleveland and Daytona are going to be popular for section-8 investing. Cleveland you can get anywhere from 1.3 to 1.8-2% rules. Dayton, you will be in the 1 to 1.3% rules. 

    [email protected]614-802-5698
    ReafCo | Ahmed Group 530 Reviews
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  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    1y

    @Anna Bee
    If you are looking in Cleveland I would recommend being in areas on the West Side of Cleveland like West Blvd, Cudell, Old Brooklyn, Clark Fulton, Edgewater, Jefferson, and Brooklyn Centre. The reason is the rent-to-price ratio is good so you can cash flow, and most of the West side doesn’t have a Point of sale inspection which is really annoying 

    [email protected]614-412-4565
    Reafco-556 Reviews
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  • Min ZhangBusiness Member
    Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
    1y

    I recommend you checking any C-class neighborhoods which are more geared towards Section 8 and long term renters. I have a neighborhood grade guide my team has been working on in Ohio that I can send

    [email protected]614-412-2912
    Reafco.512 Reviews
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  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    1y
    Quote from @Anna Bee:

    I'm very interested in investing in Section 8. However, because of the prices in my state, I am forced to explore other states. Ohio caught my attention as one of the states where I could potentially invest. Are there any investors outside Ohio state who have experience investing in Section 8 in Ohio and are willing to share their experience?


    Hi Anna! I have invested in Section 8 rentals. Happy to connect and answer any questions you may have.

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
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    0Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    1y

    Hey Anna,

    Detroit could be a great fit if you’re exploring Section 8 opportunities outside of Ohio. I’ve been investing in Detroit for several years now and have a mix of properties, including a few that are Section 8. The demand for affordable rentals is strong, and Section 8 tenants have worked out well for consistent cash flow and lower vacancy risks.

    I’ve also written quite a bit about my journey in Detroit and specifically on Section 8 investing. You can check out some of those write-ups here:

    In addition to my own investing, I also help other investors break into Detroit. My team and I handle everything from sourcing deals to overseeing rehabs and property management. We only work with cash buyers, so if that fits your strategy and you’re interested in learning more, feel free to schedule a call here: https://calendly.com/tbiziorek/20min-detroit-re-chat

    Hope that helps, and let me know if you have any questions!

    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    1y
    Quote from @Anna Bee:

    I'm very interested in investing in Section 8. However, because of the prices in my state, I am forced to explore other states. Ohio caught my attention as one of the states where I could potentially invest. Are there any investors outside Ohio state who have experience investing in Section 8 in Ohio and are willing to share their experience?


     Nobody matches HoltonWise's offerings when it comes to Section 8 investing services in Cleveland. CLICK HERE to learn more.

    0Reply
  • Jessica LarsonBusiness Member
    Property Manager · Cleveland, OH · Member since 2023 · 108 posts · 96 votes
    1y
    Quote from @Anna Bee:

    I'm very interested in investing in Section 8. However, because of the prices in my state, I am forced to explore other states. Ohio caught my attention as one of the states where I could potentially invest. Are there any investors outside Ohio state who have experience investing in Section 8 in Ohio and are willing to share their experience?

    Hi Anna! Cleveland is a great market for Section 8 investing and could be a great strategy if you have the right team to guide you through the process. Most our investors are out of state or country, and we can handle the whole process for you. Would be happy to connect and answer any questions you have!
    Haven Group Property Management11 Review
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  • Gladimir Lobo
    Real Estate Broker · Cleveland, OH · Member since 2023 · 216 posts · 82 votes
    1y

    We have over 20 years of experience with Section 8. We've seen the good, the bad and without a doubt the ugly of section 8. Click HERE to connect.

    0Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    1y

    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.

    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

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    @Anna Bee wow!

    SIX posts extolling that you should invest in Ohio S8 rentals, but none of them are investors themselves!

    Travis & I own S8 rentals in Detroit, so we can back up our advice, which the others can't.

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
    1Reply
  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    1y
    Quote from @Anna Bee:

    I'm very interested in investing in Section 8. However, because of the prices in my state, I am forced to explore other states. Ohio caught my attention as one of the states where I could potentially invest. Are there any investors outside Ohio state who have experience investing in Section 8 in Ohio and are willing to share their experience?


     My investors love it! Cincinnati has good Section 8 numbers and I think you would like it as well. Not sure if you ever looked in Cincinnati but I would love to talk some more about it when you can!

    [email protected]859-443-4952
    Sam McCormack Realtor
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