Looking for Cincinnati Proper Property Mangers Specializing in Subsidized Housing

4 Replies

Hello Everyone,

  Call me crazy, as every podcaster in the multi-family space always seems to bemoan working with sub B-Class tenants, but I'm committed to exploring the Cincinnati Housing Authority Voucher program to increase rents on mutli-family units in Cincinnati.

 Are there any property mangers out there, or those who would recommend some, who have significant experience in managing properties with these tenants (or, who specialize in this space)?

 I would love to hear from you! Thanks!

-Tanner

Tanner;

Google "Federal Pacific breaker panels" and "Aluminum wiring copper pigtail".

Familiarity with these two terms is critical when researching Cincinnati multi-family. 

So far, I have found that obtaining insurance on these things is very challenging. Further, Insurers seem to be anxious to avoid properties that have a "subsidized tenant" base. 

DL

p.s. I lived in SoCal 1983-1985 and 1990-July 2015.  Over the last 6 weeks I have been getting an "education" in Cincinnati C and D class multifamily. Buyer Beware. I don't see how an out of state investor could survive in this game. Further, I would venture to say that the Cincinnati market is not unique in this characteristic. The last thing that you want to do is purchase a "lipstick on a pig" apartment complex. 

@Tanner Gish I have a great manager in the Cincinnati area, send me a PM and I will give you his contact info. 

Originally posted by NA Martin:

Tanner;

Google "Federal Pacific breaker panels" and "Aluminum wiring copper pigtail".

Familiarity with these two terms is critical when researching Cincinnati multi-family. 

So far, I have found that obtaining insurance on these things is very challenging. Further, Insurers seem to be anxious to avoid properties that have a "subsidized tenant" base. 

DL

Thank you so much for your shares and your wisdom. I know that any MLS listing won't advertise these- thanks for letting me know, so that I can ask to better qualify the properties.

I would appreciate your help in clarifying a few things:

-" I have found that obtaining insurance on these things is very challenging"- "these" equals Cincinnati multi family, or houses with the breaker or wiring scenario's you mentioned?

-Have you an idea about the cause for concern around the subsidized tenant base ( know they're likely lower-class, but, the increased income, w/government backing, seems to decrease risk in some ways, and the higher income/unity provides the extra money for handling vacancy/ repair with a more transient population, no?

Also, I'm encouraged that you are very familar with the So Cal market in comparison to the mid-west. What challenges would you see in going multi-family C-D class in Cincinnati, that would be different from C-D class in parts of southern or East LA (Boyle Heights, Inglewood, Silver Lake (which is actually very up and up now), Norwalk/ Paramount, etc?

Thank you SO much for your wisdom, DL. Look forward to more of what you have to say on the subjects.

-Tanner

Originally posted by @Tanner Gish :
   I would appreciate your help in clarifying a few things:

-" I have found that obtaining insurance on these things is very challenging"- "these" equals Cincinnati multi family, or houses with the breaker or wiring scenario's you mentioned?

Any structure with the Federal Pacific breaker panels and/or aluminum wiring. For instance, one insurance broker told me that just the presence of "aluminum wiring" reduced the number of insurance carriers that she could place me with from 25 to 3. 

-Have you an idea about the cause for concern around the subsidized tenant base ( know they're likely lower-class, but, the increased income, w/government backing, seems to decrease risk in some ways, and the higher income/unity provides the extra money for handling vacancy/ repair with a more transient population, no?

I don't know the answer to this. This is a question for an insurance agent. Also, this might only be a "5 units and larger" problem. In my CA 4 plex, I was right next to a University, rented to students, and was never asked by my agent about student renters or section 8.

Also, I'm encouraged that you are very familar with the So Cal market in comparison to the mid-west. What challenges would you see in going multi-family C-D class in Cincinnati, that would be different from C-D class in parts of southern or East LA (Boyle Heights, Inglewood, Silver Lake (which is actually very up and up now), Norwalk/ Paramount, etc?

I see no challenges with regard to the people/management. I will say that cabinet, granite and flooring costs in Cincinnati are sky high, compared to SoCal. Also, the weather "anywhere that is not SoCal"  adds an element of "more rapid exterior deterioration" that is of course not seen in SoCal, and this must be budgeted for. 

DL

PS. Sorry for the sketchy responses, but I'm in Key West for the weekend and a little short on time.

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