$8,400 Annual Cash Flow in Year One: How Albert Chou Built Wealth with Section 8 Townhomes

Introduction

In this episode of the Affordable Housing & Real Estate Investing Podcast, host Kent Fai He interviews Albert Chou, an entrepreneur, small business owner, and Section 8 investor who generated $8,400 in annual cash flow from his very first property.

Albert’s story is proof that you do not need to scale overnight to succeed in real estate. By learning from mentors, buying conservatively, and taking a long-term approach, he has built a portfolio of Section 8 rentals that balance cash flow with freedom of time. Investors, developers, and everyday professionals looking to create wealth outside their W-2 jobs will walk away from this conversation with actionable strategies and mindset shifts.

How Did Albert Chou Get Started in Section 8 Investing?

Albert was not always focused on real estate. He spent years chasing big wins in tech and entrepreneurship. But when the stock market dropped after COVID, his net worth took a sharp hit. That’s when he turned to his longtime friend and mentor Mike Caggiano, who had quietly been building wealth through Section 8 rentals.

Albert realized that while he had been chasing windfalls, Mike had been compounding steady cash flow. Inspired, Albert decided to follow Mike’s system, even paying him the equivalent of property management fees to walk him through every step of the process. His first property in Maine became the foundation of a new approach to wealth.

What Was Albert’s First Section 8 Deal?

• Purchase price: $205,000
  
  

• Down payment: About $50,000
  
  

• Monthly rent: $2,000+
  
  

• Cash flow: Roughly $700 per month, or $8,400 annually
  
  

Albert never even saw the property in person before closing. He trusted Mike’s process, which focused on identifying towns with strong Section 8 rents and high long-term demand. This first deal was near Lake Sebago, one of Maine’s most desirable vacation areas, which provided both cash flow and appreciation upside.

Within three years, the property appreciated from $205,000 to $240,000, while still producing strong monthly returns.

How Do You Find the Right Section 8 Properties?

Albert adopted a unique rule inspired by business thinker Alex Hormozi: follow where strong companies invest. His twist? Buy near Chick-fil-A locations.

Why Chick-fil-A?

• Corporate headquarters chooses all sites, meaning locations are carefully vetted.
  
  

• Stores are only placed in markets with strong demographics and long-term growth potential.
  
  

• Homes within a few miles often appreciate faster than the broader market.
  
  

Albert told his realtor to find townhomes in Greensboro, North Carolina near Chick-fil-A locations. He ended up acquiring multiple properties that met the 1 percent rule (monthly rent equaling at least 1 percent of purchase price), with room for appreciation.

What Mistakes Did Albert Learn from Early Deals?

Not every property was perfect. During the buying frenzy of two years ago, Albert purchased a townhouse without an inspection. It turned out to have polybutylene piping, a defective material from the 1980s that cracks over time.

• Cost of mistake: Nearly $10,000 to repipe the entire home.
  
  

• Lesson: Never waive inspections, even in competitive markets. Ask inspectors to specifically check for outdated or risky materials like polybutylene or Orangeburg pipes.
  
  

Although appreciation helped offset the repair costs, Albert emphasizes that expensive lessons like these can be avoided by slowing down and sticking to fundamentals.

How Does Albert Analyze Section 8 Deals Today?

Albert focuses on cash flow, safety, and long-term demand rather than cosmetic upgrades:

• 1 percent rule: Monthly rent should equal at least 1 percent of purchase price.
  
  

• Safety first: Outlets, windows, ventilation, and fencing must meet inspection standards.
  
  

• HOA dues and expenses: He factors in fees like the $124.50 monthly HOA on his Greensboro townhome.
  
  

• Financing: He uses investment property loans tied to W-2 income, often with Rocket Mortgage for speed and convenience.
  
  

One of his recent Greensboro deals:

• Purchase price: $131,000
  
  

• Rent: $1,800+ per month
  
  

• Loan repayment: About $700 monthly at 7.3 percent interest
  This property clears the 1 percent rule and provides stable cash flow from day one.
  
  

Key Insights from Albert Chou

• Cash flow compounds over time. Even modest returns add up when repeated across multiple properties.
  
  

• Pay to learn quickly. Mentorship fees or property management costs are often cheaper than costly mistakes.
  
  

• Follow demand drivers. Buying near Chick-fil-A or other strong commercial anchors can shortcut market research.
  
  

• Never waive inspections. Short-term competition is not worth long-term headaches.
  
  

• Section 8 is misunderstood. Vacancies are near zero, rents are stable, and stigma is often exaggerated.
  
  

Memorable Quotes from Albert Chou

“I was always chasing windfalls, while Mike was steady Eddie, constantly building cash flow.”

“If you are buying investment property, you want to know exactly how many dollars are going in, because the wrong surprise will crush your ROI.”

“Most people do not want to do the work. They would rather pay you to handle it. That is true in business, and it is true in real estate.”

“The only way you escape the middle class is if you can earn more income while investing less time. For me, Section 8 rentals make that possible.”

Common Questions Answered in This Episode

How much cash flow can you make on a Section 8 townhome?
Albert’s first property generated about $700 per month, or $8,400 per year, on a $50,000 down payment.

Is Section 8 investing risky?
Like any rental, there are risks, but vacancies are nearly zero. Problems with tenants can be addressed through inspections and program rules.

How do you pick good locations for Section 8 rentals?
Albert looks for properties near strong commercial anchors like Chick-fil-A and applies the 1 percent rule.

Should you ever buy without an inspection?
No. Albert’s $10,000 repiping mistake taught him that inspections are critical.

Why invest in Section 8 instead of private rentals?
Because demand is high, rents are stable, and the math often works better compared to high-priced private rentals.

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. Through conversations with investors like Albert Chou, Kent reveals how everyday people can achieve financial freedom while creating more affordable housing opportunities.

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.