How to invest in affordable housing without losing all your money

Welcome to another episode of The Immigrant Doctor Podcast, where we unravel the complexities of real estate investing. In this insightful conversation with seasoned investor Andrea Garcia, we explore the multifaceted world of Section 8 housing. From strategic value-add approaches to the nuances of tenant stability, Andrea provides a deep dive into the benefits and intricacies of this often-misunderstood sector. 

 

Access Part 1 here:

https://podcasts.apple.com/ph/podcast/investing-in-affordable-housing/id1690509963?i=1000640442606

 

Access Part 2 here:
https://podcasts.apple.com/ph/podcast/why-affordable-housing-is-a-hidden-gem-in-real/id1690509963?i=1000641321390

 

Show Notes Summary:

1. Benefits of Section 8 Housing Strategies: Emphasis on tax exemptions or abatements and appreciation as key benefits.

2. Higher Returns with Section 8:  Internal rate of return (IRR) and cash flow are potential areas for increased profitability with skilled asset management.

3. Tenant Stability in Section 8 vs. Market Rate: Section 8 tenants tend to stay longer due to rent limitations based on their income, reducing turnover and associated costs.

4. Impact on Turnover Costs: How longer tenant stays in Section 8 housing reduce turnover costs.

5. Value Increase through NOI Changes: Andrea highlights the exponential impact on property valuation through small changes in Net Operating Income (NOI).