All Forum Posts by: Jahangir Hasanov
Jahangir Hasanov has started 1 posts and replied 12 times.
Post: Rental / Section 8 Properties
- Posts 12
- Votes 7
Quote from @Bob S.:
Quote from @Nicholas L.:
those low price points are tempting for a reason... probably lots of deferred maintenance and potentially in more challenging neighborhoods.
if you think you're going to buy a random property off Zillow and start cash flowing in month 1 or even year 1... buckle up.
i strongly recommend you start with a house hack locally instead. or... move to one of the cities, roll up your sleeves, and start in person.
https://www.biggerpockets.com/forums/12/topics/1171104-the-m...
If you follow " my rules " when renting to ANYONE cash or a govt program. Buy right, RENO right, rent right, all is fine. There is not any more deferred maintenance renting to a govt tenant vs cash.
Post: Rental / Section 8 Properties
- Posts 12
- Votes 7
Quote from @Mark Cruse:
It’s a very good program and can be lucrative if the person has the abilities and skill sets to make it work. There are many moving parts that can present massive challenges if not done effectively. However, there are so many here who can testify what a great experience they have had with it. One thing that concerns me is it seems like you could be approaching this from a simplistic mindset. It seems like you observed your friend making out with it, it’s easy, so you will do the same. It’s not easy and can be very involved. Doing it from out of town with no experience can collapse the entire thing if you dont assess reality. It’s so much more than buying any home; have home depot labors fix it; rent to section 8 and collect check to become rich. It can happen but there could be 2 to 3 dozen more things in between you need to be proficient in. You must be prepared from multiple angles and know how to maintain stability. If it was easy and smooth simply collecting checks, everyone would be rich doing the same thing with success.
Post: Rental / Section 8 Properties
- Posts 12
- Votes 7
Quote from @Nicholas L.:
those low price points are tempting for a reason... probably lots of deferred maintenance and potentially in more challenging neighborhoods.
if you think you're going to buy a random property off Zillow and start cash flowing in month 1 or even year 1... buckle up.
i strongly recommend you start with a house hack locally instead. or... move to one of the cities, roll up your sleeves, and start in person.
https://www.biggerpockets.com/forums/12/topics/1171104-the-m...
Quote from @Bob S.:
Quote from @Selina Giarla:
I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.
All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!
Go out of state. I know dozens that live overseas and all across America, including me and do all their business in the Midwest Double digit net caps are the norm. I get deals sent to me daily. I just locked up 7 more SF all will have about 15% or better net caps.
All the best
Post: Rental / Section 8 Properties
- Posts 12
- Votes 7
Quote from @Arsen Atanasovski:
Travis are you trolling me??? Jk! About classes Detroit is a street by street city not necessarily by class you have class B and a block away is a war zone so you do need boots on the ground for sure DM me or Travis and I give you some guidance but going solo is a little difficult partnering up would be a little easier and less risk but again up to you.
Post: Rental / Section 8 Properties
- Posts 12
- Votes 7
Quote from @Travis Biziorek:
Hey Jahangir, I do a ton in Detroit and have 12-doors there myself. Three of those are rented to S8 tenants.
Finding S8 tenants is definitely doable, but has gotten more challenging as more and more investors seem to be gravitating toward this strategy.
These are all great markets for cash flow and potential appreciation. You can do extremely well if you work with the right folks. I'd be happy to shoot you over some Detroit specific resources if you end up looking at that market.
Post: Rental / Section 8 Properties
- Posts 12
- Votes 7
Quote from @Arsen Atanasovski:
I’m a section 8 investor half of those items do not comply, difficult to evict?? Does that mean the city or government can’t pay you rent? Never heard of this never had this happen. Yearly inspections, great I do them 2-3 times a year it’s my property would like to see them and check on them. Have you driven a car and not do an oil change? Of course you don’t get payment until the application and process is complete and approved by the committee then you allow them access and that’s after they paid the SD. Difficult selling? Really? Hi investor, I have 10 vacant homes for sale would you like to give me a “low ball offer”??? Hi investor I have 10 fully leased section 8 tenants oh and btw here is my income statements and all the income from my section 8 properties showing the state of where ever you live depositing into my account, which on do you think you will be better off when time comes to sell???
Post: Rental / Section 8 Properties
- Posts 12
- Votes 7
Quote from @Bruce Woodruff:
Quote from @Jahangir Hasanov:
Quote from @Bruce Woodruff:
You are aware of the hazards of getting involved in S8 housing as a landlord, right?
He's lucky. Only a portion of the rent is covered. And any quick search will give you the info you need. Below is a cut/paste from a site I found. But better yet, do a deep search on this very Forum and see what actual S8 Landlords have said about this.
- Rental Pricing Regulations
- Risk of Renting in Lower Income Areas
- Restrictions of Section 8 Tenants
- Don’t Receive Voucher Payment Until Tenant Moves In
- HUD Does Not Pay Security Deposits
- Annual Property Inspections
- Potential for Difficult Tenants
- Property Damage Issues
- Harder to Evict Difficult Tenants
- Full-Paying Tenants May Turn Away
- Difficulty Selling Properties to Free Market
Post: Rental / Section 8 Properties
- Posts 12
- Votes 7
Quote from @Bruce Woodruff:
You are aware of the hazards of getting involved in S8 housing as a landlord, right?
Post: Rental / Section 8 Properties
- Posts 12
- Votes 7
Hello everyone. I’m new to bigger pockets and in need of advice. I’m new to investing and was looking to invest into 2-4 bedroom houses for Section 8 rentals. I live in NY and was looking in Detroit, MI, Cleveland, OH and Philadelphia, PA areas. Found lots of properties that might be in need of rehab for a relatively low price which seemed like a good deal to me. Question is how hard is to find section 8 tenants in those cities and which areas I should be looking to purchase that are section 8 friendly. Any advise would be greatly appreciated. Thank you.