Hi there (new to BP here), 

Anyone do section 8 rentals in Detroit, MI? If so, does anyone use PM to manage the properties? 

Soon, I'll have some capital to invest in RE. Been really interested in investing in properties in Detroit and to do section 8 rentals. I would preferably like to do this out of state, which is why I ask about PM. I wonder if it is uncommon for people to do section 8 rentals out of state.

I've heard horror stories and great success stories. I'd like to hear from others who has experience in doing section 8 rentals in Detroit and hopefully some references to PM who deal with section 8.

@Paul S Hi there, I guess you had a bad experience with section 8 investments? 

Section 8 may or may not be a great investment but this response is quite biased. Maybe it's biased because you have experience in this and been through hell.  

I'm aware of the all the cons of doing section 8. I also understand it is for low-income tenants and the tenants could bring a lot of baggage with them (potential evictions, property damage, not getting the money owed, etc). But there are pros to doing this too.

I don't know Detroit very well and I plan on going there to meet with different PM and see their point of view and see if there's potential in all of this. Based on others' success stories, there's reason for me or others interested to inquire. 

Have you invested in section 8 in Detroit, MI? Or is this just a response based on others' horror stories? 

Maybe it is uncommon for people to do section 8 rentals out of state. But I need a more substantial response than that. 

Thanks.
 

@Carson M. Thank you for your response, I just sent you a PM. 

Don’t worry about confused and spiteful trolls like the fellow a few posts back. He may literally be the biggest Detroit troll artists on Bigger Pockets. Not really sure why he hasn’t been banned. Last month he was trying to scare everybody out of the Detroit market so he could buy more properties for himself at a better price lol. Anyways, back to the importance and relevancy of placing section 8 tenants in rental properties. It is without a doubt the best and most efficient way to tenant rental properties and maximize rents here in Detroit. Not to mention the most profitable and lucrative. For example, we were approved last week via section 8 for two of our 3bed 1bath MF units for over $1250 a unit. It would have been virtually impossible to receive those same rents from cash tenants for both those units. Not to mention cash tenants these days are ridiculously high risk! Millions of cash tenants in Detroit and every other state in the country are hiding behind the Moratorium curtain and haven’t been paying rent for the past 6 months. Us, as well as our clients ALL much prefer the security of receiving government guaranteed rent every month rather than unanswered phone calls from cash tenants who are refusing to pay for one reason or another. Rent literally gets wired into ours and our clients accounts every month like clockwork. What could be better? Please enlighten me?.. Our clients sure do sleep well at night knowing it’s money in the bank time. Cha-Ching as they say..Voilà Cashflow. Pandemic proof, recession proof, unemployment proof, wups I forgot it’s rent time proof! Not only that, here in Detroit, the average stay for section 8 is 6-8 years. Some stay 20 years, some stay a life time. This sure keeps turn over costs low and at bay. Another huge benefit is owner/landlord can raise section 8 rent up every year to market rent. What’s not to like about that Pete?. Unlike these trolls or bots we’ve tenanted over 50 units in just the past year alone and both we are absolutely THRILLED with the results. Furthermore, as an investor and a turnkey provider I love that section 8 has a vigorous inspection prior to the tenant moving in. It keeps us on our toes about providing quality rehabs for ourselves, our clients as well as the tenants who will live there. Easy to see why some nefarious types would shy away from delivering section 8 rental properties. One less hoop for them to jump through on the bamboozle wagon. Receiving government guaranteed rent every month is priceless and hugely eliminates risk for out-of-state and out-of-country investors. Anyone that tells you different is either completely inexperienced or has ulterior motives. Section 8 turnkey providers are clutch in these new and uncertain times to any investor looking for positive cash flow and high fruitful returns.

Originally posted by @Isaura Orellana :

Don’t worry about confused and spiteful trolls like the fellow a few posts back. He may literally be the biggest Detroit troll artists on Bigger Pockets. Not really sure why he hasn’t been banned. Last month he was trying to scare everybody out of the Detroit market so he could buy more properties for himself at a better price lol. Anyways, back to the importance and relevancy of placing section 8 tenants in rental properties. It is without a doubt the best and most efficient way to tenant rental properties and maximize rents here in Detroit. Not to mention the most profitable and lucrative. For example, we were approved last week via section 8 for two of our 3bed 1bath MF units for over $1250 a unit. It would have been virtually impossible to receive those same rents from cash tenants for both those units. Not to mention cash tenants these days are ridiculously high risk! Millions of cash tenants in Detroit and every other state in the country are hiding behind the Moratorium curtain and haven’t been paying rent for the past 6 months. Us, as well as our clients ALL much prefer the security of receiving government guaranteed rent every month rather than unanswered phone calls from cash tenants who are refusing to pay for one reason or another. Rent literally gets wired into ours and our clients accounts every month like clockwork. What could be better? Please enlighten me?.. Our clients sure do sleep well at night knowing it’s money in the bank time. Cha-Ching as they say..Voilà Cashflow. Pandemic proof, recession proof, unemployment proof, wups I forgot it’s rent time proof! Not only that, here in Detroit, the average stay for section 8 is 6-8 years. Some stay 20 years, some stay a life time. This sure keeps turn over costs low and at bay. Another huge benefit is owner/landlord can raise section 8 rent up every year to market rent. What’s not to like about that Pete?. Unlike these trolls or bots we’ve tenanted over 50 units in just the past year alone and both we are absolutely THRILLED with the results. Furthermore, as an investor and a turnkey provider I love that section 8 has a vigorous inspection prior to the tenant moving in. It keeps us on our toes about providing quality rehabs for ourselves, our clients as well as the tenants who will live there. Easy to see why some nefarious types would shy away from delivering section 8 rental properties. One less hoop for them to jump through on the bamboozle wagon. Receiving government guaranteed rent every month is priceless and hugely eliminates risk for out-of-state and out-of-country investors. Anyone that tells you different is either completely inexperienced or has ulterior motives. Section 8 turnkey providers are clutch in these new and uncertain times to any investor looking for positive cash flow and high fruitful returns.

 I don't know how to reply properly so I just quoted it lol

Thank you for the response, Isaura! Glad to hear someone's doing well in Detroit with section 8 rentals. I know there are some horror stories out there but these stories can vary depending on how the investor/landlord handles the process. I'm sure there will be headaches along the way but every business has its share. 

Wasn't sure what to expect posting this thread and real glad to see people dropping their input. 

@Paul S. Sunghee Section can be great if done correctly.

We recommend screening Section 8 tenants just live regular tenants and doing all the background checks.

Many, but not all, S8 tenants have entitlement mentalities and in additional to being hard on properties, (causing lots of damages) they expect you to do everything for them!

So, you definitely want to require a security deposit from them.

Lastly, the $1250 in rent wired above is probably misleading. Most 3 need homes in Detroit cap at rent around $900. The $1250 amount would require the landlord to pay all utilities - which we don't recommend as tenants will abuse the utilities if they don't have to pay them.

Lolll we don't have a single unhappy client. Find me another turnkey provider in Detroit that can say that Paul S or whatever your name is. And we have dozens upon dozens of references from professional, bright, successful out-of-state as well as out-of-country clients/investors who will gladly chat with any serious investors interested in purchasing turnkey rental properties from us. And regarding the above $1250 rents Drew, utilities are NOT included. And we have documentation as well as elated clients that will attest to those rents as well. Our team members have been working with section 8 here in Detroit for over 15 years. They have strong deep rooted relationships at over a dozen different section 8 agencies accross Michigan. Not to mention many long term relationships with some of the owners and managers of those agencies. There are the large agencies like MSHDA, CMA, RPI, DHC, Livonia, etc and then there also smaller more boutique type section 8 agencies as well. Furthermore, I'm not about to disclose exactly how our turnkey is able to secure/maximize our section 8 rents to the hilts but as I said we have DOZENS of references of happy clients of ours who will attest to receiving the rents we delivered upon that others like Drew are unable to secure. Also, screening tenants properly is PM 101 so thanks for the deep insight on that to Drew. And deposits!? Wow, another zinger. I mean what novel concept. Furthermore, entitlement issues? Seriously? That's a pretty wide net your casting. Sounds like your stereotyping and truthfully we don't see much of that, so I think your grasping at straws to sound like you know what your talking about, when you unlike us, do not specialize in Section 8. And lastly, section 8 tenants are hard on the properties you say? Many of our section 8 tenants are far less hard on the properties then our Detroit cash paying or not paying tenants. Again, that's another weak and sweeping/stereotypical comment and assessment. Besides who cares if they beat up the rental property a little after receiving rent like clockwork every month for the 5-8 years they lived there. Change the carpet, paint the walls etc and do it again for another 5-8 years! These big beautiful bricks have been here since the early 1900's and aren't going to get toppled over by a single or distressed section 8 lady that has been previously stuck in a shelter or one who's fighting for her and her children's lives. I mean if I had to generalize which I don't like to do I would say that most Detroit section 8 tenants are in fact single ladies with young children who are unable or are struggling to provide for themselves and their family. Entitled really Drew? Incorrect and very unfair. Section 8 in Detroit is a slam dunk and a win win. Landlords win with great guaranteed rents and are able to help provide homes and shelter for the less fortunate in our city. Our favorite part of this job is literally giving the section 8 ladies the keys. 9 out of 10 times there are a lot of tears. I love the section 8 concept and we have MANY like minded clients who do as well who will back us up all day long! #GoDetroit #GoSection8

Isaura sounds very argumentative.. I'd hate for someone like that to be managing my rentals. 

@Isaura Orellana why would a S8 office approve rent of $1250, with no included utilities, for a 3 bedroom rental in the City of Detroit, when there are thousands of cheaper rentals?

Here is HUD's Fair Market Rent policy for Wayne County, which shows 2020 max for 3-bed was $1266 INCLUDING UTILITIES.
https://www.huduser.gov/portal...

HUD also has set policies that limit rents: https://www.hudexchange.info/p...

Where is your proof to support your claim of S8 rent for a 3-bed in the City of Detroit with $1250 rent without utilities please?

@Drew Sygit Hi, thank you for your response as well. I understand that S8 tenants may come with certain baggage. And yes, of course, I do understand screening the tenants is pretty much required. Not by the government or of any higher power, but screening should be done regardless considering what we're dealing with. 

You say, yourself, that if done right, S8 could be a good investment. And I believe that as well. Because this is something I'm really considering, I've done research and watched countless videos. Internet can provide a lot of misleading information so everyone should make their best judgement. And be realistic if this is something I (or anyone interested) can do. 

As a PM, have you dealt with S8 rentals before in Detroit? This is not me trying to start something. I'm just asking because I'm here to connect with people that have experience in doing this. I'm not posting a question and asking for people's input just because. I'm really interested in doing this. When the time comes, I'd like to meet with people who I think are qualified and experienced in this category of RE investing. 

@Isaura Orellana Hi there, I've sent you a PM. Hope you got it? 

If I'm replying incorrectly, my bad. I think I'm doing it incorrectly even though it seems easy enough: @(persons name)

Hope more people with experience come through this thread and share. 

😳 I see audacity is still on sale in 2021. But I digress. 

Anyway, sec8 and month to month with a hands on...let me say it louder for the folks in the back: A HANDS ON PM...you will see the return in Detroit. Just don't get suckered into these shady turnkey companies that make you pay over ARV for shotty rehab and tenants that are liabilities.

@Qui Reyna Hey thank you for your response. What you replied with is actually helpful lol (no darts thrown at anyone with this statement...just saying, dunno how people could take it)

It's a good reminder. 

@Sunghee Shin we actually prefer S8 tenants, if they cooperate with our screening requirements. 

We'll DM you

First off, you can provide all the links you want about $1266 being the maximum including utilities that section 8 offered in 2021 or even 2020 for that matter but the LARGEST section 8 agency in Detroit (with perhaps the exception of Detroit Housing Commission, aka DHC.) and Michigan which is Michigan State Housing Development Authority, commonly known as MSHDA approves up to $1478 including utilities. So while you blow smoke and mirrors and a bunch of virtual baloney I’m sharing about what’s really taking place on the ground in Detroit. And if I’m talking to fast for you and you can’t keep up Drew just refer above to the real truth and facts from MSHDA on the Wayne County landlord packet that anybody having anything to do with real property management in Detroit should have many of.

Secondly, you say “Isaura Orellana why would a S8 office approve rent of $1250, with no included utilities, for a 3 bedroom rental in the City of Detroit, when there are thousands of cheaper rentals?” This comment makes ZERO sense. Initially I had a feeling you didn’t really know what you’re talking about but now it’s crystal clear you have no idea what your saying and you are more than likely just another misleading , Detroit PM nightmare like 99% of the other PM’s in Detroit with all sorts of hidden fees, secret add-on’s who work against the tenant rather then with them so they end up vacating and you guys salvate over another nickel and dime placement fee.

The question ‘why’ in your first comment has absolutely NOTHING to do with it I am simply sharing my experiences. Also, if you knew the first thing about section 8 tenancy you would realize that there is a ginormous shortage of Section 8 housing in Detroit. We receive over a dozen calls daily from tenants desperate to move into anyone of our great rental properties. The Detroit Health Department even reached out to us personally last week to begin working in tandem with us and our in-house property management team placing section 8 tenants for them that are in dire or desperate need of shelter into our properties. Would you like me to provide Imoni’s number to you as well? PM’s like you love to talk about Transparency and integrity but are just the opposite and are more smoke and mirrors than anything worthy.

More than likely you haven’t even placed a section 8 tenant in years nevermind appealed, disputed or challenged the section 8 rent that was initially approved in order to get even higher section 8 rent and maximize the rent as we do with many of our properties and those properties we deliver to our clients.

I really dont even have anymore time for this with players like you but what I do know is what we are delivering to our clients as well as our section 8 tenants day in and day out, case in by case out, and the one thing we realized a long time ago is that every case is unique and there are always exceptions with the right checks and balances. Case workers look at things such as disability, are the potential tenants collecting food stamps, child support, do they have other income, SS, how many children, what ages are the children etc etc etc.....

In your earlier comment you said average for 3bedroom is around $900. That is laughable to us and also probably another reason we are so successful and you do what you do. If $900 is all you can get than your not just a misleading common two star Detroit property management outfit but a largely ineffective one as well.

I suppose there is good reason you have over 800 posts here on Bigger Pockets and only 200 likes. Guess I’m not the only professional who can see you are largely just a bait and switch transparent-less property management Co likely just scheming folks.

Lastly, our proof is with our gleeful and overjoyed clients. As I stated in the previous posts we will happily provide contact details of numerous clients of ours to any serious investors looking to purchase our turnkey properties and I know our clients will gladly attest to our high section 8 rents as well as our transparency, integrity and overall awesomeness. #GoDetroit #GoSection8

Interesting response. 

We didn't attack you, we asked questions.

Yet, your attacking response seems to be intent on stepping on us to boost yourself higher.

Originally posted by @George P. :

Isaura sounds very argumentative.. I'd hate for someone like that to be managing my rentals. 

 Thats Because its her loud barking boyfriend on the other side of the computer...... New to Detroit... Circumvention at its finest. Pictures From utility workers ( DTE ENERGY) Still Dodging My Boyz and I in the D for some unfinished Business......... Darren and his Jew boyfriend.