First investment property

Out of State Investing
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First investment property

Ryan Quinn
Member since 2023 · 1 post · 3 votes

Hello, so im 24 live in NJ with my parents and am debating using the next 2 years of living at home to just save or get started in real estate. Ive looked into all the different strategeys and for my area house hacking doesnt seem to be the best. I landed on out of state single family homes under section 8 voucheres any advice or things i should know before getting started. Im about to sell my car to help fund my first deal (i have a company vehicle that i also own). Im serous about this to willing to fly out to meet with property managers from what i heard the team you put together is important for this strategy. I landed on ohio as where im going to look to invenst.

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Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
2d

Welcome, Ryan. Good on you for learning the market before buying, and for being willing to fly out and meet people in person.

One thing to add to Denise's points: underwrite to the housing authority's payment standard for that ZIP and bedroom count, not the rent you see listed. The voucher pays up to that number, and the tenant's utility allowance can pull the usable rent down, so two similar houses can net very different amounts. Also look at which neighborhoods have steady voucher demand, since a cheap house in a thin-demand area can sit.

Since you landed on Ohio, one thing I'm still finding in Columbus is $120K-$180K single families that cash flow after expenses, and in my experience clean evictions here wrap in about 30 days when uncontested. Every market varies, so check the numbers locally.

Feel free to connect and I'll do my best to point you in the right direction.

[email protected]614-300-7535
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  • Denise SuppleeBusiness Member
    Realtor · Willow Grove, PA · Member since 2017 · 991 posts · 646 votes
    2d

    Hi @Ryan Quinn, love that you're using your time at home to build something. When I was managing properties, I learned that with voucher tenants the inspection process and the property manager make or break the whole strategy. Before you buy in Ohio, I'd ask each PM how many Section 8 tenants they actually manage, what a typical turnover costs, and how quickly their units pass inspection. I'd also keep a real reserve after closing, since selling your car to fund the deal can leave you thin when the first repair hits. Flying out to meet your team is a smart move.

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  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2d

    Welcome, Ryan. Good on you for learning the market before buying, and for being willing to fly out and meet people in person.

    One thing to add to Denise's points: underwrite to the housing authority's payment standard for that ZIP and bedroom count, not the rent you see listed. The voucher pays up to that number, and the tenant's utility allowance can pull the usable rent down, so two similar houses can net very different amounts. Also look at which neighborhoods have steady voucher demand, since a cheap house in a thin-demand area can sit.

    Since you landed on Ohio, one thing I'm still finding in Columbus is $120K-$180K single families that cash flow after expenses, and in my experience clean evictions here wrap in about 30 days when uncontested. Every market varies, so check the numbers locally.

    Feel free to connect and I'll do my best to point you in the right direction.

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
    WebsiteView Page
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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    2d
    Quote from @Ryan Quinn:

    Hello, so im 24 live in NJ with my parents and am debating using the next 2 years of living at home to just save or get started in real estate. Ive looked into all the different strategeys and for my area house hacking doesnt seem to be the best. I landed on out of state single family homes under section 8 voucheres any advice or things i should know before getting started. Im about to sell my car to help fund my first deal (i have a company vehicle that i also own). Im serous about this to willing to fly out to meet with property managers from what i heard the team you put together is important for this strategy. I landed on ohio as where im going to look to invenst.

    I know a lot of out-of-state investors who have been doing this over the years. Happy to connect and talk about their experiences.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    1d

    Hi @Ryan Quinn if you have the money to purchase out of state, there is a really good chance you can house hack in New Jersey for much less money out of pocket. There is even the possibility of living for free in your house hack in NJ. That is right you can live for free in New Jersey in 2026 via house hacking. I would strongly suggest connecting with people in your backyard before hopping on flights to start your REI on journey.

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  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 952 votes
    1d
    Quote from @Ryan Quinn:

    Hello, so im 24 live in NJ with my parents and am debating using the next 2 years of living at home to just save or get started in real estate. Ive looked into all the different strategeys and for my area house hacking doesnt seem to be the best. I landed on out of state single family homes under section 8 voucheres any advice or things i should know before getting started. Im about to sell my car to help fund my first deal (i have a company vehicle that i also own). Im serous about this to willing to fly out to meet with property managers from what i heard the team you put together is important for this strategy. I landed on ohio as where im going to look to invenst.

    Awesome move saving up capital while living at home, Ryan, that gives you a huge head start at 24. Going out-of-state for Section 8 in the Midwest is a great play for reliable cash flow, but the success of that strategy completely hinges on who you have on the ground. Local housing authorities have specific inspection standards, payment standards, and lease approval timelines, so you need a property manager who actively specializes in voucher placements rather than just a general PM. Flying out to vet your team in person is the absolute right move because a solid PM and contractor will make or break your remote experience. Feel free to reach out anytime if you want to connect on local housing authority dynamics or need introductions to vetted investor-friendly teams out here!

    [email protected]614-418-6081
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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    1d

    Ryan, you're actually thinking about this the right way by taking some time to learn before jumping into the first property. If you're looking at Section 8 rentals in Ohio from New Jersey, I'd focus on the full numbers rather than just the voucher rent. Look at taxes, insurance, property management, repairs, CapEx, vacancy, and what the property realistically puts in your pocket after everything.

    I’d also get comfortable with the fact that an out-of-state rental means you’ll have another state involved in the tax and reporting side. Getting the bookkeeping and property records organized from the first purchase will make that much easier.

    One other thing caught my attention: you mentioned selling a company vehicle to fund the deal. If the company owns the vehicle, I'd check the tax consequences before counting all of the sale proceeds as available investment capital. The sale can have a different tax result depending on the vehicle's basis and depreciation history.

    And before buying, I'd have the property manager run the numbers with you and make sure the deal still works after realistic maintenance and management costs. Section 8 can provide stability, but it doesn't make a bad property a good investment.

    If you're serious about building a portfolio, I'd focus on getting the first property structured and documented correctly, then make the next one easier to repeat.

    Feel free to DM me, I’d be happy to send over a few resources that might be helpful.

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  • Joseph ScoreseBusiness Member
    Banker · Philadelphia · Member since 2009 · 2k+ posts · 634 votes
    1d

    Ryan, first off, I respect your mindset at 24. You're living at home, thinking about building assets instead of liabilities, and willing to make sacrifices to get started. That's a great foundation.

    I've spent years in real estate investing and private lending, and my advice is simple: Don't rush to buy your first property. Focus on buying your first property correctly.

    Ohio can offer opportunities, but don't let a low purchase price fool you. A $70,000 property can become an expensive lesson if you're dealing with deferred maintenance, high property taxes, vacancies, or poor management.

    Section 8 can be a solid strategy, but understand the inspection requirements, local housing authority procedures, rent approval process, tenant responsibilities, and potential delays before receiving your first payment.

    Since you're investing out of state, your property manager will be one of your most important relationships. Interview several, check references, and make sure you have reliable contractors and boots on the ground.

    I'd also recommend getting prequalified before shopping. Understand your down payment, financing options, closing costs, and required reserves. Don't put every dollar you have into the acquisition.

    One last thought: Living at home for another two years is an advantage, not a setback. Use that time to build capital, credit, relationships, and knowledge. You don't need ten properties by 30. You need a strong first investment that positions you for the second.

    Happy to share some insight from the lending side as you narrow down your options. Keep that ambition, Ryan, but let the numbers make the decisions.

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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    1d

    @Ryan Quinn

    "out of state single family homes under section 8 vouchers" - yikes. spectacularly high risk strategy. please provide the numbers on any "deals" you're considering and how much they'll actually cost to buy and put into service. seems extremely likely you'll just lose money in the the first few years.

    how much effort did you put in trying to house hack? how many lenders did you talk to, how many properties did you look at, how many offers did you make?

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  • Jarret Jarvis
    Real Estate Agent · Chicago · Member since 2021 · 170 posts · 64 votes
    19h

    Living at home at 24 is a big advantage. You don't have to choose between saving and investing, because saving now is what lets you invest safely.

    A few things I'd know before buying out-of-state Section 8 in Ohio:

    - Your property manager is everything. Interview 3+, ask how many Section 8 units they manage, their days-to-lease and inspection pass rate, and all their fees. Call a few of their current owners.

    - Look up the housing authority's payment standards for the zip codes you're targeting. Don't trust a seller's rent numbers.

    - Expect inspections and 30-60+ days before the first payment comes in.

    - Skip the cheapest houses. Solid B-/C+ areas usually beat $50k properties that need constant repairs.

    - Get your own inspection, and keep 6+ months of reserves after closing. Selling the car is fine, but don't go all-in on the down payment.

    When you fly out, drive the neighborhoods and meet PMs, a lender, an investor-friendly agent and a contractor in the same trip.

    I'm a Chicago agent, but happy to connect you with good referrals in Ohio if it helps. Good luck!

    Jarret

    0Reply
  • Alex LawsonPro Member
    Investor · Columbus GA · Member since 2021 · 23 posts · 14 votes
    18h

    I do section 8 in Georgia Alabama and Tennessee while living in Oregon feel free to reach out I would love to help!

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