Section 8 investing in Cleveland
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Min ZhangBusiness Member
Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votesHey Asma! Welcome to BiggerPockets. If you are looking into Section 8, I recommend you check the Columbus market. Any C-class neighborhoods are more geared towards Section 8 and long term renters. Let me know how I can help!
41 Replies
- Member since 2020 · 4 posts · 1 vote2yOk great, who’s “your guy”?
Quote from @Bob S.:
Quote from @Nicholas Jacob Nowosielski:
Do you guys have an inspector that is well versed in sec 8 and could inspect a few properties for me in Cleveland and make a list of things that need to be done to pass the sec 8 inspection?
Inspector, never, my guys walk it. I have past 100s and 100s 100s of sec 8 inspections never once using an inspector.
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes2y
Quote from @Nicholas Jacob Nowosielski:
Ok great, who’s “your guy”?Quote from @Bob S.:
Quote from @Nicholas Jacob Nowosielski:
Do you guys have an inspector that is well versed in sec 8 and could inspect a few properties for me in Cleveland and make a list of things that need to be done to pass the sec 8 inspection?
Inspector, never, my guys walk it. I have past 100s and 100s 100s of sec 8 inspections never once using an inspector.
One of my contractors,
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes2y
Quote from @Bob S.:
Quote from @Nicholas Jacob Nowosielski:
Ok great, who’s “your guy”?Quote from @Bob S.:
Quote from @Nicholas Jacob Nowosielski:
Do you guys have an inspector that is well versed in sec 8 and could inspect a few properties for me in Cleveland and make a list of things that need to be done to pass the sec 8 inspection?
Inspector, never, my guys walk it. I have past 100s and 100s 100s of sec 8 inspections never once using an inspector.
One of my contractors.
So you have a prop you are thinking about buying. Here a few questions
Who is walking it for you? \
Who told you it's an area you want to be in ?
Who told you the price is good?
Who provided you with the reno budget and do you know if its a fair price?Happy to help,
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes2y
Quote from @Asma Shah:
Hi, I have read posts in a number of forums about section 8 investing in Cleveland. I am a newcomer to the real estate investment scene in the US (moved here in the pandemic), and I wanted to connect with anyone that has experience with Section 8 investments in Cleveland particularly. I am interested in looking at out of state investment opportunities as the high cost of living in NJ really does make it very investor friendly at the moment. I’m looking for information from experienced investors about areas within other cities & states that are promising for such investments. I'm absolutely clueless, and am looking for anyone who 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 if you could share your insights on what would be absolutely crucial & invaluable to me as I take my first steps on this journey. Thanks so much in advance!
Its the same as renting to any tenant, just more paperwork. I have been living OOS for 10+ years doing Sec 8,,, Love it. 15% ++ NET caps based on cash purchase
Buy right, reno right, rent/screen right,
- Real Estate Broker · Cleveland, OH · Member since 2018 · 227 posts · 133 votes2y
Section 8 can definitely cause extra headaches like the longer wait times to get a tenant in there, the inspections, and the incompetent CMHA office you can never get a hold of. There's definitely challenges, but there's definitely tons of demand for Section 8 in the Cleveland market, especially for single family properties.
Bob is right, you can get some high rent amounts from CMHA, but it's not always guaranteed. But notwithstanding all the challenges and headaches, this is definitely a great market to do Section 8 rentals from my experience. And they just increased their rental limits to try and keep pace with cash tenants, so if Section 8 is part of your strategy, now is a great time. - Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes2y
Quote from @David Leggett:
Section 8 can definitely cause extra headaches like the longer wait times to get a tenant in there, the inspections, and the incompetent CMHA office you can never get a hold of. There's definitely challenges, but there's definitely tons of demand for Section 8 in the Cleveland market, especially for single family properties.
Bob is right, you can get some high rent amounts from CMHA, but it's not always guaranteed. But notwithstanding all the challenges and headaches, this is definitely a great market to do Section 8 rentals from my experience. And they just increased their rental limits to try and keep pace with cash tenants, so if Section 8 is part of your strategy, now is a great time.100% however they have been great with me over the last 1 or two years with getting inspections faster. I do prefer EDEN, they are about 2 weeks Done. They just gave me $905 (why not 900 lol) for a 1 BR in my 7 unit across from the RTA in East Clev, whoop , cash would be about 650, oh and 1700 for my 4 BR in Lee Harvard ,
- Member since 2023 · 1 post · 1 vote1y
Sept 1st, 2024 I acquired a duplex in Ohio. I choose that market due to affordability, potential cashflow and cash on cash return.
I bought the duplex for $145,000 which put monthly payment at $918 monthly. Thats PITI. plus 10% property management.
Section 8 rent for my zipcode is approx $2500 Gross rent.
This is a net profit of ~~ $1300 monthly.
1300 monthly X 12 = $15,600 anuall cash flow
15,600 cash flow/ $53,000 acquisition cost = 29.4% cash on cash return.
However thus far all of this is still theoretical. I am currently & have been trying to get squatters out of my property. Both units of the duplex have squatters. Allegedly they were scammed by a fake landlord posing as property owner. He collected first/last/security payments prior to move in date and was never heard from again. I suspect this occurred because the property had sat vacant for a few months. After getting new property management we made contact with inhabitants of both units and attempted to strike a new lease with us. One unit signed the other did not. Neither unit has paid rent and has blocked us from communications. We are attempting to get an eviction date, but could not pass a lead paint inspection because the weather is so cold in Cleveland that the paint will not dry. As of today however due to a signed affidavit we will be given a court date to follow through with eviction and perform said strategy above with section 8.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes1y
Quote from @Kris Gardner:
Sept 1st, 2024 I acquired a duplex in Ohio. I choose that market due to affordability, potential cashflow and cash on cash return.
I bought the duplex for $145,000 which put monthly payment at $918 monthly. Thats PITI. plus 10% property management.
Section 8 rent for my zipcode is approx $2500 Gross rent.
This is a net profit of ~~ $1300 monthly.
1300 monthly X 12 = $15,600 anuall cash flow
15,600 cash flow/ $53,000 acquisition cost = 29.4% cash on cash return.
However thus far all of this is still theoretical. I am currently & have been trying to get squatters out of my property. Both units of the duplex have squatters. Allegedly they were scammed by a fake landlord posing as property owner. He collected first/last/security payments prior to move in date and was never heard from again. I suspect this occurred because the property had sat vacant for a few months. After getting new property management we made contact with inhabitants of both units and attempted to strike a new lease with us. One unit signed the other did not. Neither unit has paid rent and has blocked us from communications. We are attempting to get an eviction date, but could not pass a lead paint inspection because the weather is so cold in Cleveland that the paint will not dry. As of today however due to a signed affidavit we will be given a court date to follow through with eviction and perform said strategy above with section 8.
Doubtful there was a fake landlord scam. More likely scenario is simply squatters who are gonna ride this out till the eviction goes through. Fairly common here in Cleveland. Evict them, rehab the house, grab new tenants and keep it moving.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes1y
Quote from @Nicholas Jacob Nowosielski:
Ok great, who’s “your guy”?Quote from @Bob S.:
Quote from @Nicholas Jacob Nowosielski:
Do you guys have an inspector that is well versed in sec 8 and could inspect a few properties for me in Cleveland and make a list of things that need to be done to pass the sec 8 inspection?
Inspector, never, my guys walk it. I have past 100s and 100s 100s of sec 8 inspections never once using an inspector.
Nicholas,
I think you may wanna read the threads below before hiring any of Bob's "guys".
Exposing more of Bob Prisco's (AKA Bob Stevens) Lies
Who is Bob Stevens AKA Bob Prisco and what's his involvement in Cleveland?
- Member since 2022 · 1 post · 0 votes1y
Quote from @Bob S.:
Quote from @Nicholas Jacob Nowosielski:
Do you guys have an inspector that is well versed in sec 8 and could inspect a few properties for me in Cleveland and make a list of things that need to be done to pass the sec 8 inspection?
Inspector, never, my guys walk it. I have past 100s and 100s 100s of sec 8 inspections never once using an inspector.
Hey Bob, thanks for sharing your experience! Have you ever heard of Eric Spofford? Their offering Turnkey section 8 rentals that they've purchased, rehabed, qualify for Section 8, get it leased, and then manage it for you. Properties are typically $100K. They charge a $10K fee and their monthly management fee is 10%. I've looked at a few of their deals now and they're averaging close to 26% cash on cash returns. Seems too good to be true, but after reviewing their numbers and deals it's a great investment. Have you heard of this or think this would be a bad decision?
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes1y
Quote from @Jarrett L Cameron III:
Quote from @Bob S.:
Quote from @Nicholas Jacob Nowosielski:
Do you guys have an inspector that is well versed in sec 8 and could inspect a few properties for me in Cleveland and make a list of things that need to be done to pass the sec 8 inspection?
Inspector, never, my guys walk it. I have past 100s and 100s 100s of sec 8 inspections never once using an inspector.
Hey Bob, thanks for sharing your experience! Have you ever heard of Eric Spofford? Their offering Turnkey section 8 rentals that they've purchased, rehabed, qualify for Section 8, get it leased, and then manage it for you. Properties are typically $100K. They charge a $10K fee and their monthly management fee is 10%. I've looked at a few of their deals now and they're averaging close to 26% cash on cash returns. Seems too good to be true, but after reviewing their numbers and deals it's a great investment. Have you heard of this or think this would be a bad decision?
Eric Spofford's company tried to buy a property from me with an LLC that was shut down by the state months earlier. His whole business seems shady as all get up.
- Jacksonville Florida · Member since 2018 · 3 posts · 0 votes1y
Hi Min
My name is Ashish. I also have the similar requirements as described above. Please let me know a god time to talk.
Thanks
Ashish
- Real Estate Broker · Cleveland, OH · Member since 2023 · 205 posts · 78 votes1y
Section 8 this, section 8 that! We've just rented a one bedroom thru section 8 for a smooth $1,450 per month.
- 1wArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 906 votes
Quote from @Asma Shah:
Hi, I have read posts in a number of forums about section 8 investing in Cleveland. I am a newcomer to the real estate investment scene in the US (moved here in the pandemic), and I wanted to connect with anyone that has experience with Section 8 investments in Cleveland particularly. I am interested in looking at out of state investment opportunities as the high cost of living in NJ really does make it very investor friendly at the moment. I’m looking for information from experienced investors about areas within other cities & states that are promising for such investments. I'm absolutely clueless, and am looking for anyone who 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 if you could share your insights on what would be absolutely crucial & invaluable to me as I take my first steps on this journey. Thanks so much in advance!
Cleveland is definitely worth a look for Section 8, especially if cash flow is the goal. I’d focus more on the numbers and choosing the right neighborhood block by block rather than just chasing the highest rent. Tenant quality, property condition, and location can make a huge difference. Since you’re open to investing out of state, I’d definitely keep Ohio on your radar. There are still affordable markets with solid rental demand.
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