Protect yourself with Section 8

If you haven’t heard of Section 8, it’s basically housing support for low-income families in the USA.

In a nutshell, Section 8 tenants have their rent (or part of it) paid by the US Government.

There are many myths and rumours about Section 8.

But in my experience it is the property investor’s friend.

Because in most cases it will help you to achieve your goals.

How?

1. The Section 8 inspection

For overseas investors like you this is probably the most important aspect of Section 8.

You see, to be approved for Section 8 a property must pass a tough government inspection.

That’s why we insist all our USA investment properties are renovated to Section 8 standards before they are sold to you.

If you’d like to see what is available right now – just reply to me.

A word of warning…

Recently I’ve seen some companies offering properties as ‘Section 8 standard’.

Sound’s great, but here are 3 things you should know.

Firstly, your property can only be ‘Section 8 standard’ after it has passed a Housing Quality Standards (HQS) inspection.

Secondly, you can only have an inspection once you have a Section 8 tenant.

The tenant needs to make a commitment to rent your property by handing in their Section 8 Voucher to your management company.

You cannot simply ask for an inspection.

Thirdly, the inspection costs nothing.

It is free – not US$ 150 as some claim.

How do you check if your property is really ‘Section 8 standard’?

If your property is rented to a Section 8 tenant you should ask to see the Housing Assistance Payments Contract (HAP Contract).

And a copy of the lease agreement.

This will have details of exactly what Section 8 have agreed to pay.

We rent around 25% of our properties to Section 8 tenants.

And it costs us around US$ 20,000 on average to renovate a property to Section 8 standards.

That’s because Section 8 have very strict controls.

As a result, many sellers avoid doing this.

They may tell you it has passed – but don’t take their word for it.

Insist on seeing a copy of the Section 8 Voucher and the lease for your property before you complete your purchase.

2. Your rent is paid by the US Government

You get paid on time into your own bank account every month.

3. Section 8 tenants have to behave

Section 8 tenants must maintain your property in good condition.

If they fail to do so they will be evicted from your property and black-listed from the Section 8 program for life.

Once black-listed, they cannot reapply for Section 8 anywhere in the USA.

For this reason the vast majority of Section 8 tenants are very good tenants.

4. You can choose your tenants

Just because someone is Section 8 approved, it doesn’t mean you have to rent your property to them. You are free to let your management company screen them as normal.

And if you don’t want to take Section 8 tenants – you don’t have to.

5. There’s a huge shortage of homes with Section 8 approval

In Detroit over 2,000 families are now on the waiting list for Section 8 properties.

Most approved properties are rented within a week of becoming available.

Finally, in case you are wondering, there’s no such thing as Section 8 housing blocks or zones.

Any property in any area can be rented to Section 8 tenants – as long as it passes the inspection.

In fact, you will find Section 8 housing in some of the best neighborhoods in Detroit.

For an up-to-date list of investment properties in Detroit (ALL fully refurbished and tenanted) just reply to me.

Let’s have a quick look at a few that are available right now.

This one is on Grandmont Avenue in Herman Gardens…

Grandmont Avenue in Herman Gardens

Herman Gardens is in southwest Detroit next to Warrendale and Dearborn Heights.

Properties in Herman Gardens are mainly owner occupied and well maintained.

And that means vacancy rates are low – so you should never struggle to find tenants.

This property is only 600 meters (0.4 miles) to the shops, banks and restaurants on Tireman Avenue.

And a 4 minute walk to Detroit Premier Academy and Warrendale Charter Academy.

Henry Ford College, University of Michigan- Dearborn and Fairlane Town Center are all within 15 minutes’ drive.

This house has 3 bedrooms, 1 bathroom, a living room, a kitchen, a 750 sq. ft. basement and a 5,401 sq. ft. garden.

It is on offer for US$ 56,995.

Your monthly rent is US$ 850, paid by Section 8.

Your net yield is 14.52%.

That’s US$ 8,273 in your bank account every year.

Want full details?

Simply reply to me.

This place is on Memorial Street in Herman Gardens…

Memorial Street in Herman Gardens

This property is only 300 meters (0.2 miles) to the shops, banks and restaurants on West Warren Avenue.

And a 10 minute walk to Detroit Premier Academy and Mansfield-Diversey Park.

Henry Ford College, University of Michigan- Dearborn and Fairlane Town Center are all within 13 minutes’ drive.

This house has 3 bedrooms, 1 bathroom, a living room, a kitchen, a 450 sq. ft. basement and a 5,227 sq. ft. garden.

It is on offer for US$ 56,995.

Your rent is US$ 900 per month, paid by Section 8.

Your rental yield is 15.29% net.

That’s US$ 8,715 in your pocket every year.

Want to know more?

Just reply to me.

This last one is on Griggs Street in Grand Meyer…

Griggs Street in Grand Meyer

Grand Meyer is an established neighborhood in Southwest Detroit.

It is 12km from Downtown Detroit or a 13 minute drive.

Many people living in Grand Meyer work in Dearborn which is just a 5 minute drive from this property.

This is because property prices in Dearborn are much higher than in Grand Meyer.

But it also means demand for housing is high.

And this is already starting to push up property prices and rents.

So you are likely to benefit from strong capital growth.

This property is 900 meters (0.6 miles) from Grand Meyer Plaza and the shops, banks and restaurants on Grand River Avenue.

And an 8 minute walk to Noble Elementary-Middle School and Littlefield Playfield.

The house has 3 bedrooms, 1 bathroom, a half bathroom, a living room and a kitchen.

There is also a 600 sq. ft. basement and a 4,051 sq. ft. garden.

This property is on sale for US$ 52,995.

Section 8 pay your rent of US$ 850 per month.

Your net return is 16.01% – after all expenses.

That’s US$ 8,484 in your hand every year.

If you’d like to know more – simply reply to me.

Remember all our USA investment properties are:

  • Fully renovated – average cost of works US$ 20,000
  • Freehold with full warranty deed
  • Already tenanted with pre-screened tenants – you get paid from day one
  • Professionally managed – your rent is paid on time into your own bank account

Plus, with our Detroit properties you get all this completely free:

  • Free Title Insurance
      – value US$ 499
  • Free 1 year Property Insurance
      – value US$ 495
  • Free 12 month Home Warranty
      – value US$ 700

Total value = US$ 1,694.

I won’t offer you unrealistic guarantees which can’t be fulfilled, like some people I could mention.

But I do promise you…

  • Your vacancy rates will be very low (last 3 years 3.58% average)
  • You will always get paid what you are due
  • I will stay right by your side for as long as you own your property
    It doesn’t matter if it’s 3 months or 30 years – if you have a problem I’ll be here to help.

Because I know that if you get the returns you are expecting you’ll come back for more.

You might even refer your friends and family, if I’m really lucky.

And unlike many of my competitors I don’t charge you a finder’s fee, an enabling fee or an arrangement fee.

In fact I don’t charge you any fees at all.

So if you’d like full details of what’s on offer in Detroit – just reply to me.

Best,

Rebecca

Copyright OVG Invest Co. Ltd. 2009 - 2019
Email: info@ovginvest.com
Tel: +852 3101 7075 - Fax: +852 3101 7076
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