K
ent He increased the rent on his affordable housing unit by $550 a month after adding a bedroom, bringing in an extra $6,600 annually. His "recession-proof" investment strategy involves operating Airbnbs and affordable housing units, which provide predictable and reliable income. When a Section 8 tenant moved out of his single-family home in Fairfield, Alabama, He saw an opportunity to improve the property by adding a room and converting it into a four-bedroom unit.

    The investment has already started to pay off, with the Birmingham Housing Authority determining that the property can now be rented for $1,257 per month. This is a significant increase from the original rent of $700 per month. He noted that even though his cash flow increases, his tenant's payment doesn't necessarily go up, as they are responsible for paying 30-40% of their income towards the rent.

    He's learned that housing choice vouchers typically pay based on the bedroom count and that homes with two bathrooms tend to rent out easier than those with one toilet. Owning an affordable housing unit is part of his greater "recession-proof" investment strategy, which involves combining short-term rentals for cash flow with affordable housing units for stability.

    He's been successful in real-estate investing, earning enough from his short-term rental units to cover his family's expenses and quit his day job. However, he didn't want to rely solely on the short-term rental strategy due to its volatility. He diversified his portfolio by buying affordable housing units, which provide predictable and stable income.

    The benefits of providing affordable housing include diversification, predictable income, and accountability for both the landlord and tenant. As a Section 8 landlord, you can collect rent reliably, even if the tenant loses their job, as the government will pay the rest of the rent. Additionally, there's an inspection every one to two years to ensure the home is in good condition.

    He has built a YouTube channel dedicated to affordable housing and aims to educate people about the misconceptions surrounding it. He believes that buying affordable housing can provide a stable roof over hardworking families' heads, as his own parents experienced when they immigrated to the US from China with limited resources.