331: Government-Sponsored Housing Is A Lucrative Niche

Finding strong cash flowing properties has become increasingly difficult over the past several years as the amount of money chasing Real Estate has risen dramatically. Most properties typically require a value-add business plan which can take months, if not years, to complete before generating cashflow. In-place cash flow, however, is a rarity. One exception is government-sponsored Section 8 homes, or smaller, 1–4-unit apartments. These properties cash flow right out of the gate. Mat Simmons, Managing Partner and Founder of Simmons & co, is on his way to building a portfolio of 1000 Section 8 properties he can eventually sell to a larger institutional investor. Investors in Mat’s fund are enjoying risk-adjusted, high-teens annual returns that are paid monthly.