Is $23k Liquid Reasonable to Start Section 8 Investing in OH?

Property Manager · Seattle, WA · Member since 2024 · 14 posts · 14 votes

Hi All!
This will be my first investment property. I currently live in Washington State, and am looking to invest in OH, providing housing for Section 8. I’m a full time property manager in my 9 to 5 and manage 138 doors. I’m wondering if $23k of my own liquidated funds is reasonable to start looking for an investment property? Any thoughts and comments welcome as I am very new and open to learning from seasoned investors. Thank you all! 🙏🏼

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Drew SygitBusiness Member

Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes

@Guenevere F. you're going to need 20-25% down to get a mortgage.

If you target $100k, that won't leave you any funds for closing cost, maintenance or emergency reserves.

You could try targeting around $80k, but the $16k-$20k down payment would still not leave you with enough.

If you buy under $80k, you're probably buying such a low-end property that it is unlikely to meet your performance expectations.

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Cameron GreenPro Member
Real Estate Agent · Cleveland, OH · Member since 2023 · 73 posts · 46 votes
1y
With $23k and potentially more, you're in a good position to start looking for investment properties, especially in Ohio, where property prices can be relatively affordable. Given your experience managing 138 doors, you already have a significant advantage in understanding tenant needs, property maintenance, and financial planning.

Key tips:
- Focus on personal finances: Keep building excellent credit and maintaining healthy reserves.
- Financing: Explore loan options like conventional, or DSCR loans to maximize your purchasing power.
- Location: Research neighborhoods with strong Section 8 demand and landlord-friendly regulations.
- Due diligence: Analyze properties carefully, factoring in rehab costs, property management, and cash flow potential.
Your expertise and willingness to learn put you in a strong position—best of luck!
[email protected]216-644-9728
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Brandon GoldsmithBusiness Member
Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
1y
I would personally recommend having a little more for reserves. You are not far away but with the down payment and budget, that would put you in some rougher areas which typically have higher turn over or more up front capx. Not sure if the goal is to buy turnkey or do a value add project. @Guenevere F.
[email protected]614-963-3340
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