How Andrew Cairns Scaled to 100+ Affordable Housing Units in Austin

Why this story matters for affordable housing investors

What if you could build a portfolio of over 100 affordable housing units in one of the most expensive markets in the U.S.—and still cash flow? That’s exactly what Andrew Cairns has done in Austin, Texas.

In this episode of the Affordable Housing & Real Estate Investing Podcast, host Kent Fai He sits down with Andrew to unpack how he went from buying his first property just before the pandemic to building a 100+ unit affordable housing portfolio, partnering with nonprofits like the Salvation Army, and creating long-term impact for women and children in need.

Andrew’s story proves that you don’t need to wait for the “perfect” market to get started—you need systems, perseverance, and a willingness to take on the challenges most investors avoid.

How do you start investing in affordable housing during uncertain times?

Andrew began his investing journey in February 2020—just before COVID-19 shut down the world. On his first deal, a contractor mishap caused a fire in the house. Within weeks, a global pandemic threatened rental income everywhere.

Instead of giving up, Andrew pushed through. He refinanced, leveraged appreciation, and reinvested into new deals. That decision set the foundation for scaling quickly.

Lesson for new investors: challenges are inevitable, but if you put a number to the problem and solve it, fear loses its power.

How can you scale in expensive markets like Austin?

Most investors shy away from Austin because of its high prices. Andrew took the opposite approach:

• Focused on distressed properties that others avoided (foundation issues, roof replacements, heavy rehabs).
  
  

• Added value through conversions like turning garages into bedrooms, increasing rent potential.
  
  

• Leveraged BRRRR on steroids: buy, rehab, refinance, repeat—pulling out equity as the market appreciated.
  
  

By reinvesting cash-out refi proceeds, Andrew multiplied his portfolio at lightning speed.

What does affordable housing cash flow look like in practice?

While cash flow on individual Austin units was modest ($100–$150 per month), appreciation was significant. For example:

• A $250K property renovated for $50K later appraised at $780K.
  
  

• Cash-out refinances created equity to buy more properties, doubling the portfolio repeatedly.
  
  

Andrew emphasizes that real wealth came not just from monthly cash flow, but from equity growth and long-term holds.

How do you work with nonprofits to reduce vacancies?

Andrew built strong partnerships with organizations like the Salvation Army, ensuring housing for women and children. Instead of marketing properties to the general public, he gave nonprofits first priority.

This approach:

• Pre-leased units before they were ready.
  
  

• Reduced vacancy almost to zero.
  
  

• Brought in tenants screened by social workers, creating stability.
  
  

How do you screen contractors and keep rehab costs under control?

Andrew admits he lost $5,000 to a bad contractor on his first deal. His solution:

• Visit job sites and ask contractors to explain their process.
  
  

• Build long-term relationships where both parties grow their business.
  
  

• Focus on “good enough” finishes for affordable housing, not luxury rehabs.
  
  

Cost benchmarks from Andrew’s portfolio:

• Garage conversion: $8K–$12K
  
  

• Roof replacement: $3K–$8K
  
  

• Full HVAC replacement with ducting: $5.5K–$6.2K
  
  

• Water heater relocation: $800–$1,100
  
  

Key Insights from Andrew Cairns

• Perseverance pays off: his first deal caught fire, but he stayed the course.
  
  

• Appreciation can outpace cash flow in expensive markets.
  
  

• Distressed properties are opportunities, not dangers, when you know the numbers.
  
  

• Partnerships with nonprofits eliminate vacancy and provide mission-driven impact.
  
  

• Systems like the BRRRR strategy are scalable—even in competitive markets.
  
  

Best Quotes from Andrew Cairns

“Day one, my property caught fire. You can crawl under your bed or you can figure it out. I chose to figure it out.”

“We were willing to buy the properties no one else wanted. That’s where the opportunity was.”

“Out of more than 100 tenants, we’ve had one eviction in four years. That should tell you something about the myths around affordable housing.”

“Affordable housing isn’t about making the highest cash flow. It’s about helping people and building equity long-term.”

Common Questions This Episode Answers

How do you know if a property has foundation issues?
Look for sloping floors, cracks in walls, or use a marble test on the floor. Major fixes range from $5K to $27K, but they can still make sense if the numbers work.

What kind of returns can affordable housing investors expect?
Cash flow might be modest, but equity gains and stable long-term tenants create powerful wealth-building opportunities.

Are Section 8 tenants risky?
Andrew’s data: one eviction out of 100+ tenants in four years. Inspections and voucher eligibility actually encourage tenants to maintain homes responsibly.

How do you minimize vacancy in affordable housing?
Partner with nonprofits like Salvation Army, who prescreen tenants and fill units before they’re even finished.

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.