How Tomi Odukoya Turned His VA Loan Into a Section 8 Investment Portfolio

From Disabled Veteran to Section 8 Investor

What if your very first home, the one you bought just to move out of mom’s house, could turn into the foundation of a multi-property real estate portfolio? That’s exactly what happened to Tomi Odukoya, a disabled veteran, attorney, and now affordable housing investor in San Antonio.

In this episode of the Affordable Housing & Real Estate Investing Podcast by Kent Fai He, Tomi shares how he used his VA loan to buy his first house, turned it into a Section 8 rental, and grew his portfolio to 10 properties. His story is packed with lessons for anyone who wants to break into affordable housing investing, build long-term wealth, and actually help families in need at the same time.

How Can Veterans Use the VA Loan to Start Investing?

Many veterans don’t realize the VA loan isn’t just for buying one house. Tomi discovered he could use it more than once, which gave him a zero-down entry into homeownership.

• Purchase price: $245,000 in 2019
  
  

• Current value: ~$325,000 (an $80K gain in equity)
  
  

• Cash flow: Around $200/month after PITI
  
  

Even though the house wasn’t purchased as an investment, Tomi later converted it into a Section 8 rental. The result: appreciation, cash flow, and the foundation for scaling his portfolio.

What Are the Biggest Myths About Section 8 Rentals?

Tomi heard all the “war stories” about Section 8 tenants destroying houses. But his experience told a different story.

He explains that most negative outcomes come from poor landlording, not the program itself. His philosophy:

• Respect tenants as people, not stereotypes.
  
  

• Communicate constantly. Never just hand over the keys and disappear.
  
  

• Take responsibility for maintenance. Don’t expect tenants to act like owners.
  
  

In Tomi’s words:

“None of it is true if you don’t want it to be true. For me, dealing with the Section 8 program feels like this is where I belong. I can be profitable, but also actually be helpful.”

How Do Section 8 Rent Increases Work?

One of the most eye-opening parts of Tomi’s journey is how he secured a 16% rent increase with his housing authority.

• Rent increased from: $1,951 → $2,280/month
  
  

• Tenant’s portion decreased by $15/month because of an income adjustment
  
  

• Net effect: Tomi earns more, the tenant pays less, and HUD covers the difference
  
  

His strategy? Use HUD’s published payment standards for his zip code, then request the maximum allowable increase (up to 10% above the listed rate).

“No civilian landlord is getting a year-over-year increase of 16% without major renovations. And with Section 8, it was just paperwork.”

What Lessons Did Tomi Learn From His First Rentals?

Every property taught Tomi something new. Some of his top lessons:

• Screen for initiative. If tenants show they’re proactive (like visiting the property on their own), they’re more likely to be responsible renters.
  
  

• Respond quickly. Treat housing authority caseworkers and tenants like partners by replying within hours, not days.
  
  

• List early. He pre-marketed a rental on affordablehousing.com before closing, filling it immediately after purchase.
  
  

• Build in safeguards. Larger deposits and clear agreements gave him peace of mind when taking risks with tenants in transition.
  
  

Why Is Affordable Housing So Hard to Solve?

When asked this question on the podcast, Tomi’s answer cut to the heart of the problem:

“We all need to get back to housing as a need. Do we need 4,000-square-foot homes? No. We need roofs, indoor plumbing, and stability. If we focus on needs, affordable housing becomes much easier to solve.”

Key Insights from Tomi’s Story

• Using the VA loan strategically can jumpstart a rental portfolio.
  
  

• Section 8 is a people business: treat tenants with dignity and set clear expectations.
  
  

• Rent increases are not only possible, they can benefit both landlord and tenant.
  
  

• Delayed gratification, patience, and constant learning are essential for long-term success.
  
  

• Affordable housing starts with focusing on needs, not wants.
  
  

Memorable Quotes

“The person who owns one home is a lot closer to the person who owns 500 than they are to the person who owns zero.”

“I refuse to be a slumlord. If my tenants need repairs, they’re getting done in 24 hours.”

“Where their money comes from is no guarantee that they won’t be good tenants. People are people.”

“Every deal gets better. Every deal is a lesson, not a loss.”

Frequently Asked Questions

How do you get started with Section 8 investing?
Begin by contacting your local housing authority to understand payment standards and landlord requirements. Buying a home in the right zip code can position you for strong returns.

Is Section 8 profitable for landlords?
Yes. In Tomi’s case, he secured a 16% rent increase in one year while his tenant’s rent portion actually went down. HUD payments provide stable, guaranteed income.

What’s the biggest challenge in Section 8?
Patience. The inspections and paperwork can take time. But once systems are in place, the process becomes predictable.

Do VA loans work for investment properties?
Yes, indirectly. Buy as a primary residence with zero down, then later convert it into a rental when you move to another property.

Why This Podcast Matters

Stories like Tomi’s prove that affordable housing is both a path to financial freedom and a way to make a real difference.

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. His mission is to provide everyday investors with the tools, knowledge, and connections to build wealth while solving America’s housing crisis.

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.