Section 8 and Out of State Investing

[Mario Rodriguez]

Hi,

I saw some gurus offer classes to invest in out of state section 8 rentals. Also, I read Greene’s and Turner’s book to invest out of state. Though it sounds straightforward to hire a PM and get the property rented, for some reason it gives me cold feet. Is this doable and great or have you experienced a headache?

Best,

Mario

[Samuel Diouf]

Yes this strategy works great especially if the numbers don't work locally. There are a lot of investors doing this successfully in Ohio! 

You just need to pick your market and develop your core 4 team. The core 4 consists of a realtor, contractor, property manager, and a lender. Once you have this team in place, you should have the foundation to invest in any market confidently while not being there physically.

[Travis Biziorek]

Hey Mario, yes out-of-state investing can work well especially if you're in a high cost of living area.

I invest in Detroit and live in California. I know many others (and have helped other investors) do the same. 

It's definitely more challenging than investing locally. And it's going to take more work, especially if you decide to go it alone and try to build a team yourself. 

[Michael Smythe]

@Mario Rodriguez we have a lot of out-of-country and out-of-state clients investing in Detroit area.

If you can find the right team it goes well.

The challenge is finding that team, otherwise you'll get ripped off and lose most your money.

PM us for more info if interested.

[Zeke Liston]

Quote from @Mario Rodriguez:

Hi,

I saw some gurus offer classes to invest in out of state section 8 rentals. Also, I read Greene’s and Turner’s book to invest out of state. Though it sounds straightforward to hire a PM and get the property rented, for some reason it gives me cold feet. Is this doable and great or have you experienced a headache?

Best,

Mario

 Hey Mario, this is very doable. If this is something you're uncomfortable with, I would try to invest locally if feasible. But if you have the right team, OOS investing is a great route to go. 

[Samantha Fedor]

Hi Mario, section 8 rentals can be a great market to get into. We manage many rental properties here in Cincinnati, Oh, with most of our owners/landlords out of state and out of country. I will DM you!

[Sam McCormack]

Quote from @Mario Rodriguez:

Hi,

I saw some gurus offer classes to invest in out of state section 8 rentals. Also, I read Greene’s and Turner’s book to invest out of state. Though it sounds straightforward to hire a PM and get the property rented, for some reason it gives me cold feet. Is this doable and great or have you experienced a headache?

Best,

Mario

 You may not see the results, making you feel like there is no purpose, or it seems too easy to be true. Which yes, it isn't easy. But you don't invest for the first 6 months when you lose money, but you invest for 3, 5, 10 years down the road when you are selling it, pulling equity, or you are getting $800/month cash flow because the market is up again and inflation is up. Nothing worth it is easy! Cincinnati has worked well for my investors, let me know if this area interests you. It is known for its' cash flow, but also has population/job growth with multiple attractive other reasons, let me know!

[Maureen McCann]

Hi Mario,  Investing out of state is very doable. There are turnkey companies in the US that provide investors a completely renovated and tenanted property.  I am happy to direct you to the reputable companies. DM me and I will give you the scoop.  

Cheers!

[James Wise]

Quote from @Mario Rodriguez:

Hi,

I saw some gurus offer classes to invest in out of state section 8 rentals. Also, I read Greene’s and Turner’s book to invest out of state. Though it sounds straightforward to hire a PM and get the property rented, for some reason it gives me cold feet. Is this doable and great or have you experienced a headache?

Best,

Mario

 Welcome aboard big dawg.

[Oliver Martinez]

Quote from @Travis Biziorek:

Hey Mario, yes out-of-state investing can work well especially if you're in a high cost of living area.

I invest in Detroit and live in California. I know many others (and have helped other investors) do the same. 

It's definitely more challenging than investing locally. And it's going to take more work, especially if you decide to go it alone and try to build a team yourself. 

How is investing in Detroit? Are you having any issues with getting you rent on time? Do you usually get close to FMR?

[Oliver Martinez]

Quote from @Maureen McCann:

Hi Mario,  Investing out of state is very doable. There are turnkey companies in the US that provide investors a completely renovated and tenanted property.  I am happy to direct you to the reputable companies. DM me and I will give you the scoop.  

Cheers!

 Hey! Can i get the scoop?

[Oliver Martinez]

Quote from @Michael Smythe:

@Mario Rodriguez we have a lot of out-of-country and out-of-state clients investing in Detroit area.

If you can find the right team it goes well.

The challenge is finding that team, otherwise you'll get ripped off and lose most your money.

PM us for more info if interested.

 Are sec 8 landlords getting their rent on time?

[Travis Biziorek]

Quote from @Oliver Martinez:

Quote from @Travis Biziorek:

Hey Mario, yes out-of-state investing can work well especially if you're in a high cost of living area.

I invest in Detroit and live in California. I know many others (and have helped other investors) do the same. 

It's definitely more challenging than investing locally. And it's going to take more work, especially if you decide to go it alone and try to build a team yourself. 

How is investing in Detroit? Are you having any issues with getting you rent on time? Do you usually get close to FMR?

It's been extremely good to me overall. Most of my tenants are cash paying (not S8) but I have 3 that are on S8.

You can get close to FMR but I find it's generally not worth it. The best tenants have vouchers that aren't going to be that high. 

My S8 rents tend to be around what I'd get with a cash paying tenant and I'm happy with that. I do have one bungalow on the west side rented at $1,400/mo which is at least $100-$150 more than I'd get with a cash tenant.

[Michael Smythe]

@Oliver Martinez S8 Housing Commissions typically pay on time.

Once a year maybe, someone makes a mistake and there are delays.

[Alyssa Wright]

You should be 100% fine as long as you do the proper research into your agents, pm's, etc... Most of the investors that other agents I work with are out-of-state and they've had no problems on either end! 

[Oliver Martinez]

Quote from @Samuel Diouf:

Yes this strategy works great especially if the numbers don't work locally. There are a lot of investors doing this successfully in Ohio! 

You just need to pick your market and develop your core 4 team. The core 4 consists of a realtor, contractor, property manager, and a lender. Once you have this team in place, you should have the foundation to invest in any market confidently while not being there physically.

I am a brand new investor, looking to dive into the Section 8 game in Detroit. I have a handful of properties I have found, all 75k and under. I understand it can be very difficult to get a mortgage for that low, i was wondering if anyone in here can help me out! I had previously had a lender offering 15% down but he is not licensed in MI, I was previously looking in AL.

[Oliver Martinez]

Quote from @Alyssa Wright:

You should be 100% fine as long as you do the proper research into your agents, pm's, etc... Most of the investors that other agents I work with are out-of-state and they've had no problems on either end! 

I am a brand new investor, looking to dive into the Section 8 game in Detroit. I have a handful of properties I have found, all 75k and under. I understand it can be very difficult to get a mortgage for that low, i was wondering if anyone in here can help me out! I had previously had a lender offering 15% down but he is not licensed in MI, I was previously looking in AL.

[Oliver Martinez]

Quote from @Maureen McCann:

Hi Mario,  Investing out of state is very doable. There are turnkey companies in the US that provide investors a completely renovated and tenanted property.  I am happy to direct you to the reputable companies. DM me and I will give you the scoop.  

Cheers!

I am a brand new investor, looking to dive into the Section 8 game in Detroit. I have a handful of properties I have found, all 75k and under. I understand it can be very difficult to get a mortgage for that low, i was wondering if anyone in here can help me out! I had previously had a lender offering 15% down but he is not licensed in MI, I was previously looking in AL.

[Oliver Martinez]

Quote from @Michael Smythe:

@Oliver Martinez S8 Housing Commissions typically pay on time.

Once a year maybe, someone makes a mistake and there are delays.

 

I am a brand new investor, looking to dive into the Section 8 game in Detroit. I have a handful of properties I have found, all 75k and under. I understand it can be very difficult to get a mortgage for that low, i was wondering if anyone in here can help me out! I had previously had a lender offering 15% down but he is not licensed in MI, I was previously looking in AL.

[Oliver Martinez]

Quote from @James Wise:

Quote from @Mario Rodriguez:

Hi,

I saw some gurus offer classes to invest in out of state section 8 rentals. Also, I read Greene’s and Turner’s book to invest out of state. Though it sounds straightforward to hire a PM and get the property rented, for some reason it gives me cold feet. Is this doable and great or have you experienced a headache?

Best,

Mario

 Welcome aboard big dawg.

I am a brand new investor, looking to dive into the Section 8 game in Detroit. I have a handful of properties I have found, all 75k and under. I understand it can be very difficult to get a mortgage for that low, i was wondering if anyone in here can help me out! I had previously had a lender offering 15% down but he is not licensed in MI, I was previously looking in AL.

[Oliver Martinez]

Quote from @Michael Smythe:

@Mario Rodriguez we have a lot of out-of-country and out-of-state clients investing in Detroit area.

If you can find the right team it goes well.

The challenge is finding that team, otherwise you'll get ripped off and lose most your money.

PM us for more info if interested.

 

I am a brand new investor, looking to dive into the Section 8 game in Detroit. I have a handful of properties I have found, all 75k and under. I understand it can be very difficult to get a mortgage for that low, i was wondering if anyone in here can help me out! I had previously had a lender offering 15% down but he is not licensed in MI, I was previously looking in AL.

[Drew Sygit]

@Oliver Martinez you could have used the "@name" format to include everyone you wanted to reach out to on a single response, instead of entering 6 copies of the same message:)

Unless you plan to live in the property (owner-occupied) you will typically need at least 20-25% down to get a mortgage - unless you find a private investor to fund your acquisition.

Also, as you've found, most of these lenders have minimum loan amounts of $75k-$100k.

Unless you are a VERY experienced investor, we don't recommend buying rentals in the City of Detroit under $80k. They are unlikely to be in good areas, so you won't get the expect ROI results.

There are several lenders that will fund acquisition+rehab transactions based upon the After-Repaired-Value (ARV).

PM us if we can be of further assistance.

[Samuel Diouf]

You should work on building more capital first. 

[Linda Labbe]

We do a lot of investing in Detroit but we do not purchase rentals below 75k there  they are so more likely to be  in war zones and get far less rent so the numbers dont work especially after you have had a water heater and furnace walk out the door a few times. We purchase i areas with higher value get great returns and have no trouble with financing infact often with loans get all out funds out. More then willing to share what we are doing if anyone wants to chat