How to Invest in Affordable Housing in North Carolina with Jeremy Garrido

Introduction: From Painting Walls to Building Housing Solutions

Most investors dream about financial freedom, but very few are willing to get their hands dirty in some of the most challenging neighborhoods. Jeremy Garrido, a full-time real estate investor in North Carolina, did just that. He started by working alongside his father as a painter in New York, learned the ropes from contractors who specialized in Section 8 rentals, and eventually built a portfolio that now includes affordable housing, government-subsidized tenants, and short-term rentals.

In this episode of the Affordable Housing & Real Estate Investing Podcast, hosted by Kent Fai He, Jeremy opens up about the grit it takes to succeed in affordable housing, the mistakes he made in D-class neighborhoods, and how he balances profitability with helping people who desperately need stable housing.

This conversation matters for affordable housing investors, developers, and advocates because Jeremy demonstrates both the opportunities and the realities: the cash flow potential, the tenant challenges, and the mindset shifts required to thrive.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments.

How Did Jeremy Garrido Get Started in Affordable Housing?

Jeremy’s path began during the Great Recession in 2008 when he realized he didn’t want a traditional 9–5 career. Working with his father, he saw contractors buying distressed properties, renovating them, and renting them to Section 8 tenants. The margins were clear, the equity was real, and he quickly realized this was a proven model.

He purchased his first properties in New York, renting them out through Section 8 programs. The cash flow was undeniable: a mortgage of about $1,000 with Section 8 covering $1,800 in rent. Eventually, he sold some New York units and reinvested in North Carolina, where property values were significantly lower, and subsidy programs like Trillium provided strong rental support for tenants with disabilities.

What Are the Risks of Buying in D-Class Neighborhoods?

Jeremy doesn’t sugarcoat the challenges of low-income housing in high-crime neighborhoods. He dealt with overdoses, property destruction, fires, squatters, and even fatalities in tenant units.

The lesson: while properties may be cheap to acquire, they come with higher risks and tenant turnover. He warns new investors not to be lured in by the low purchase price without considering the management and emotional toll.

Still, Jeremy highlights the power of relationships. By working with a well-connected local contractor, he gained credibility in difficult neighborhoods and was able to protect his investments. Without those relationships, he says, “don’t do it”.

How Does Jeremy Balance Section 8 Rentals and Airbnb?

To create stability in his portfolio, Jeremy diversified into short-term rentals. Living in a North Carolina beach town gave him the opportunity to run seasonal Airbnbs while maintaining steady cash flow from affordable housing.

His strategy:

• Run Airbnbs at peak season for maximum income.
  
  

• Transition to mid-term rentals during the winter to cover costs.
  
  

• Use profits from short-term rentals to offset the risks and damages that sometimes occur in low-income units.
  
  

This hybrid model allowed him to keep helping tenants in affordable housing while still maintaining overall profitability.

What Mindset Shifts Are Needed to Succeed in Affordable Housing?

Jeremy emphasizes that affordable housing requires resilience and a willingness to see beyond profit. Many tenants have agencies supporting them, but the reality is that landlords often need to show compassion, patience, and flexibility.

At the same time, he stresses the importance of financial discipline:

• Always keep strong reserves (he keeps a year’s worth of expenses).
  
  

• Expect that damages will occur—it’s not “if” but “when.”
  
  

• Avoid analysis paralysis and take consistent action.
  
  

His biggest mindset lesson: you cannot project your doubts onto others. “Don’t assume people don’t want to work with you. Just dive in and do the deal,” he shares.

Key Insights from Jeremy Garrido

• Cash Flow Potential is Real: Section 8 often pays above-market rents, providing stable income.
  
  

• Neighborhood Selection Matters: Low entry prices often come with higher risks—investors must be prepared.
  
  

• Diversification Protects Cash Flow: Mixing affordable housing with Airbnb rentals created balance.
  
  

• Relationships are Everything: Contractors and local connections can make or break success.
  
  

• Mindset is the X-Factor: Overcoming fear, staying disciplined with reserves, and helping tenants creates long-term wins.
  
  

Memorable Quotes from Jeremy Garrido

“At the end of the day, you don’t lose until you stop trying. Real estate is about grit.”

“Yes, I could have made more money, but I also helped people who had nowhere else to go. That matters.”

“Don’t compare yourself to the syndicators with thousands of units. Focus on your lane and build your own reputation.”

“If you want to succeed in affordable housing, expect problems. It’s not if they happen, it’s when.”

Common Questions This Episode Answers

Is investing in Section 8 housing profitable in North Carolina?
Yes. Section 8 and Trillium often pay above-market rents, creating strong cash flow. However, investors must budget for higher repairs and management involvement.

What are the biggest risks in low-income housing?
Tenant damage, crime in certain neighborhoods, and higher turnover rates. Success depends on reserves, patience, and strong property management.

Can you combine affordable housing with Airbnb rentals?
Yes. Jeremy runs both, using short-term rental profits to offset risks from his affordable housing portfolio.

How much should you hold in reserves for affordable housing rentals?
Jeremy recommends at least a year’s worth of expenses, since unexpected damages can cost tens of thousands of dollars.

What mindset do new affordable housing investors need?
Patience, resilience, and compassion. Affordable housing isn’t just about money—it’s about building community and providing stability for tenants.

Final Thoughts

Jeremy Garrido’s story proves that affordable housing can be both profitable and impactful when done with the right mindset. His mix of Section 8 rentals, Trillium-supported tenants, and Airbnb diversification provides a roadmap for balancing income with social good.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments.

DM me @kentfaihe on IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.