Anyone Have Experience with Section 8 in Detroit?

Member since 2024 · 7 posts · 2 votes

Hi BP,

As a newcomer to the real estate investment scene, I wanted to see if anyone had experience with Section 8 investments in Detroit. I’m particularly interested in learning about areas within the city that hold promise for such investments. If anyone is willing to share their experiences, advice, or point me towards resources that could help in understanding the market better, I would be immensely grateful. Your wisdom and insights would be invaluable to me as I take my first steps in this journey. Thanks so much in advance!

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Michael SmytheBusiness Member

Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes

@John Kim we manage almost 700 doors in Detroit tri-county area, almost 100 are S8.

What specifically do you want to know?

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Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
2y
@John Kim we manage almost 700 doors in Detroit tri-county area, almost 100 are S8.
What specifically do you want to know?
Logical Property Management4.9455 Reviews
Website View Page
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John Kim
OP
Member since 2024 · 7 posts · 2 votes
2y
I'm 100% overseas now and no longer feel bound to invest in the city I live in. I'm also relatively young and interested in some more "challenging" investments (although recognizing that I would have to do everything remotely and source through a property management company like yours). These have kind of led me to Detroit.

The numbers make sense to purchase a sub $100k property and put it up for Section 8. But I see so many people swear against Section 8 that it makes me think that I may be oversimplifying this strategy. Even when sourcing a Section 8 tenant through a company like yours, what are the biggest challenges for investors in this space?

I'm interested in some more "challenging" investments.
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Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
2y
Hey John, happy to help if I can. I own 12-doors in Detroit and 3 of those are rented to section 8 tenants.
The best areas for S8 tend to be C Class neighborhoods. If you go into A/B Class the rents are going to be too high to justify doing section 8, meaning market rents are higher than Section 8 is able to pay.
If you go down to D Class areas you're going to attract terrible tenants and it will be a nightmare.
1 Reply
Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
2y
@John Kim @Travis Biziorek is 100% correct.
S8 really isn't difficult, but it's not the answer to everything that the self-proclaimed "gurus" make it out to be.
With S8 tenants, you're just trading one set of challenges versus direct paying tenants.
When we advertise a rental, we take the best tenant we can find, immaterial of their source of rental funds.
You want to be careful investing in the City of Detroit because there are a lot of "crooks" trying to sell you Class D properties dressed up to look like Class C or B.
Connect with us or Travis for more info!
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John Kim
OP
Member since 2024 · 7 posts · 2 votes
2y
Quote from @Michael Smythe:

@John Kim @Travis Biziorek is 100% correct.
S8 really isn't difficult, but it's not the answer to everything that the self-proclaimed "gurus" make it out to be.
With S8 tenants, you're just trading one set of challenges versus direct paying tenants.
When we advertise a rental, we take the best tenant we can find, immaterial of their source of rental funds.
You want to be careful investing in the City of Detroit because there are a lot of "crooks" trying to sell you Class D properties dressed up to look like Class C or B.
Connect with us or Travis for more info!

DM sent to the both of you. Thanks so much!
0 Reply
Oliver Martinez
Member since 2024 · 20 posts · 7 votes
2y
Quote from @Travis Biziorek:

Hey John, happy to help if I can. I own 12-doors in Detroit and 3 of those are rented to section 8 tenants.
The best areas for S8 tend to be C Class neighborhoods. If you go into A/B Class the rents are going to be too high to justify doing section 8, meaning market rents are higher than Section 8 is able to pay.
If you go down to D Class areas you're going to attract terrible tenants and it will be a nightmare.

How do you know if a neighborhood is C class as an out of state investor?
0 Reply
Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
2y
Quote from @Oliver Martinez:

Quote from @Travis Biziorek:

Hey John, happy to help if I can. I own 12-doors in Detroit and 3 of those are rented to section 8 tenants.
The best areas for S8 tend to be C Class neighborhoods. If you go into A/B Class the rents are going to be too high to justify doing section 8, meaning market rents are higher than Section 8 is able to pay.
If you go down to D Class areas you're going to attract terrible tenants and it will be a nightmare.

How do you know if a neighborhood is C class as an out of state investor?

Lots and lots of research.
Price points also help, block quality, etc. Happy to send some resources if you'd like to reach out.
1 Reply
Heriberto Melgoza
Rental Property Investor · Miami, FL · Member since 2020 · 2 posts · 0 votes
1y
Quote from @Travis Biziorek:

Quote from @Oliver Martinez:

Quote from @Travis Biziorek:

Hey John, happy to help if I can. I own 12-doors in Detroit and 3 of those are rented to section 8 tenants.
The best areas for S8 tend to be C Class neighborhoods. If you go into A/B Class the rents are going to be too high to justify doing section 8, meaning market rents are higher than Section 8 is able to pay.
If you go down to D Class areas you're going to attract terrible tenants and it will be a nightmare.

How do you know if a neighborhood is C class as an out of state investor?

Lots and lots of research.
Price points also help, block quality, etc. Happy to send some resources if you'd like to reach out.

Hi Travis. If you don't mind, can you share those resources with me as well? Thank you!
0 Reply
Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
1y
Quote from @Heriberto Melgoza:

Quote from @Travis Biziorek:

Quote from @Oliver Martinez:

Quote from @Travis Biziorek:

Hey John, happy to help if I can. I own 12-doors in Detroit and 3 of those are rented to section 8 tenants.
The best areas for S8 tend to be C Class neighborhoods. If you go into A/B Class the rents are going to be too high to justify doing section 8, meaning market rents are higher than Section 8 is able to pay.
If you go down to D Class areas you're going to attract terrible tenants and it will be a nightmare.

How do you know if a neighborhood is C class as an out of state investor?

Lots and lots of research.
Price points also help, block quality, etc. Happy to send some resources if you'd like to reach out.

Hi Travis. If you don't mind, can you share those resources with me as well? Thank you!
Absolutely! I just sent you a DM.
0 Reply
Ravi Bhagavan
Member since 2024 · 6 posts · 5 votes
1y
Quote from @Travis Biziorek:

Quote from @Oliver Martinez:

Quote from @Travis Biziorek:

Hey John, happy to help if I can. I own 12-doors in Detroit and 3 of those are rented to section 8 tenants.
The best areas for S8 tend to be C Class neighborhoods. If you go into A/B Class the rents are going to be too high to justify doing section 8, meaning market rents are higher than Section 8 is able to pay.
If you go down to D Class areas you're going to attract terrible tenants and it will be a nightmare.

How do you know if a neighborhood is C class as an out of state investor?

Lots and lots of research.
Price points also help, block quality, etc. Happy to send some resources if you'd like to reach out.

Hi Travis- would super appreciate it if you can send me the same resources. thanks in advance!
0 Reply
Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
1y
Quote from @Ravi Bhagavan:

Quote from @Travis Biziorek:

Quote from @Oliver Martinez:

Quote from @Travis Biziorek:

Hey John, happy to help if I can. I own 12-doors in Detroit and 3 of those are rented to section 8 tenants.
The best areas for S8 tend to be C Class neighborhoods. If you go into A/B Class the rents are going to be too high to justify doing section 8, meaning market rents are higher than Section 8 is able to pay.
If you go down to D Class areas you're going to attract terrible tenants and it will be a nightmare.

How do you know if a neighborhood is C class as an out of state investor?

Lots and lots of research.
Price points also help, block quality, etc. Happy to send some resources if you'd like to reach out.

Hi Travis- would super appreciate it if you can send me the same resources. thanks in advance!

Sure, just sent you a DM.
0 Reply
Dominique Rhodes
Member since 2024 · 4 posts · 3 votes
1y
Quote from @Travis Biziorek:

Quote from @Oliver Martinez:

Quote from @Travis Biziorek:

Hey John, happy to help if I can. I own 12-doors in Detroit and 3 of those are rented to section 8 tenants.
The best areas for S8 tend to be C Class neighborhoods. If you go into A/B Class the rents are going to be too high to justify doing section 8, meaning market rents are higher than Section 8 is able to pay.
If you go down to D Class areas you're going to attract terrible tenants and it will be a nightmare.

How do you know if a neighborhood is C class as an out of state investor?

Lots and lots of research.
Price points also help, block quality, etc. Happy to send some resources if you'd like to reach out.
Hey Travis, just sent you a DM for any resources you may have in Detroit!
0 Reply
Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
1y
Quote from @Dominique Rhodes:

Quote from @Travis Biziorek:

Quote from @Oliver Martinez:

Quote from @Travis Biziorek:

Hey John, happy to help if I can. I own 12-doors in Detroit and 3 of those are rented to section 8 tenants.
The best areas for S8 tend to be C Class neighborhoods. If you go into A/B Class the rents are going to be too high to justify doing section 8, meaning market rents are higher than Section 8 is able to pay.
If you go down to D Class areas you're going to attract terrible tenants and it will be a nightmare.

How do you know if a neighborhood is C class as an out of state investor?

Lots and lots of research.
Price points also help, block quality, etc. Happy to send some resources if you'd like to reach out.
Hey Travis, just sent you a DM for any resources you may have in Detroit!

Received!
0 Reply
Josh Duncan
Member since 2023 · 23 posts · 8 votes
1y
@Travis Biziorek
Interested in the resources for out of state investors that you mentioned! Greatly appreciate if you could send it my way. Specifically interested in the Detroit area as well.
Thanks and Merry Christmas
0 Reply
Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
1y
Quote from @Josh Duncan:

@Travis Biziorek
Interested in the resources for out of state investors that you mentioned! Greatly appreciate if you could send it my way. Specifically interested in the Detroit area as well.
Thanks and Merry Christmas

Sure, just DM'd you.
Merry Christmas!
0 Reply
Aaron Raffaelli
New to Real Estate · Metro Detroit Michigan · Member since 2024 · 28 posts · 12 votes
1y
Quote from @Travis Biziorek:

Quote from @Oliver Martinez:

Quote from @Travis Biziorek:

Hey John, happy to help if I can. I own 12-doors in Detroit and 3 of those are rented to section 8 tenants.
The best areas for S8 tend to be C Class neighborhoods. If you go into A/B Class the rents are going to be too high to justify doing section 8, meaning market rents are higher than Section 8 is able to pay.
If you go down to D Class areas you're going to attract terrible tenants and it will be a nightmare.

How do you know if a neighborhood is C class as an out of state investor?

Lots and lots of research.
Price points also help, block quality, etc. Happy to send some resources if you'd like to reach out.
Hello travis,
could you dm me these resources as well?
thank you
0 Reply
Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
1y
Quote from @Aaron Raffaelli:

Quote from @Travis Biziorek:

Quote from @Oliver Martinez:

Quote from @Travis Biziorek:

Hey John, happy to help if I can. I own 12-doors in Detroit and 3 of those are rented to section 8 tenants.
The best areas for S8 tend to be C Class neighborhoods. If you go into A/B Class the rents are going to be too high to justify doing section 8, meaning market rents are higher than Section 8 is able to pay.
If you go down to D Class areas you're going to attract terrible tenants and it will be a nightmare.

How do you know if a neighborhood is C class as an out of state investor?

Lots and lots of research.
Price points also help, block quality, etc. Happy to send some resources if you'd like to reach out.
Hello travis,
could you dm me these resources as well?
thank you

Sure, just DM'd you.
For anyone else, it's far easier if you just send me a direct message.
0 Reply
Enzo Favieri
Member since 2025 · 1 post · 0 votes
1y
Hello Travis @Travis Biziorek, hope you are doing well.
Could you dm me these resources as well?

Thank you in advance.
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