Christian Osgood explains why well-maintained multifamily Section 8 buildings in good locations generate millions in returns, while dilapidated single houses in remote areas yield only thousands. He argues investors should focus on quality apartment complexes with amenities like clubhouses to maximize profit in subsidized housing.
Chapters
Hey, it's your favorite slumlord here. While you guys were busy beating me up about my slummy properties online, I did realize you may have a point. We just bought this building, I forgot to take down the Christmas decorations. Talk about slummy. We deck this place out, we close on the property, and we don't even put them away. I'm gonna have to drive back down here next Tuesday to finish up the job of trim this thing, uh, undecorated. Oh, but seriously, Section 8 housing, this is what I'm talking about. Like, this is the the clubhouse in the middle of the campus. We have this beautiful place that people actually love being at. We keep it super affordable, government subsidized. But look at those— these are really nice, really nice buildings. If you guys want to make a ton of money in Section 8 subsidized housing, do not buy beat-up houses in the middle of nowhere. You can make like a couple thousand dollars doing that, or you can make millions of dollars on projects like this. Food for thought.