Updated about 4 hours ago on . Most recent reply
Advice on renting out of state properties
Hi everyone!
I was wondering if I could get some guidance or pointers here. My father and I are looking to get into a venture in real estate, and have been looking at buying and renting properties out of state. We live in California and prices here are a bit too much to comfortably take the risk. We are looking at states like Ohio and Illinois and planning to either do section 8 rentals or just general renting. Is section 8 still a viable option, and if so, what should I be aware of? Other than the fact that you're taking a risk with renters if you don't do your due diligence.
The numbers add up, the property we are looking at is 70k, and would take a 25% down payment of 17.5k. It's 3 bed and 1.5 bath and is fully renovated. The loan may be about 733 a month, and we can hopefully expect a rent of ~1400 a month from section 8. Assuming a property manager charges us 10% of that, that brings us to a total monthly cost of ~900 a month given small repairs and such.
The numbers feel good, but I'm just afraid they feel too good to be true. Has anyone here entered this type of market and can provide some wisdom and knowledge for us? I would greatly appreciate it!
Most Popular Reply
Cesar, those numbers actually look solid for Midwest markets. Section 8 can definitely work — steady, government-backed rent is a big plus. A few things to keep in mind:
- Inspections & timelines – Section 8 units need to pass inspection before tenants move in, which can cause minor delays.
- Rent setting – The housing authority sets approved rent, so make sure your target aligns with their schedule.
- Property management – Since you’re out of state, having a PM who knows Section 8 paperwork and inspections is key.
Markets like this in the Midwest often have low entry prices and strong rental demand