Dropping Bombs Section 8: The Recession Proof Real Estate Investing Strategy
May 21, 2025
Stephen J. Reel, a Section 8 investor and aspiring fund manager, shares his inspiring journey from addiction to managing a $110M real estate fund. He dives deep into the benefits of Section 8 housing as a recession-proof investment and unveils the importance of meticulous tenant screening. Reel also outlines essential strategies for launching an investment fund, including navigating legal complexities. Additionally, he discusses his ambitious goal of building a thousand-house portfolio, emphasizing cash flow and effective investor engagement.
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Section 8 Provides Stable Income
- Stephen J. Reel chose Section 8 housing for security because rents are government-backed and stable.
- During COVID, government checks continued without interruption, with 100% rent payment guaranteed.
Screen Tenants to Protect Property
- Proper tenant screening is essential to avoid bad behavior from Section 8 renters.
- Housing authorities help enforce rules since tenants risk losing their vouchers if they misbehave.
Section 8 Tenant Stereotypes Debunked
- Many believe Section 8 tenants are lower class, but the majority are middle-aged white people with disabilities.
- Poverty does not equate to low character; thorough vetting reveals tenant quality.