How Jake Dettinger Built a Section 8 Rental Portfolio in Just 3 Months

Introduction: Why Jake’s Story Matters

When people think about affordable housing, they often assume it’s a slow, complicated process reserved for big developers. But Jake Dettinger proves otherwise. In only three months, he partnered his way into purchasing five Section 8 rentals, showing everyday investors that financial freedom and impact can go hand in hand.

Jake, a former CPA and finance professional, pivoted into real estate after experiencing career setbacks. His story demonstrates how investors can secure guaranteed rent, overcome stigma around Section 8, and build wealth while helping families find quality housing. This conversation on the Affordable Housing & Real Estate Investing Podcast by Kent Fai He reveals the blueprint for getting started with affordable housing, no matter your background.

Why Should Real Estate Investors Consider Section 8 Housing?

One of Jake’s earliest realizations was that Section 8 isn’t just about helping families in need. It’s also a sound financial strategy.

• Guaranteed Rent: During COVID, when many landlords were left without payment recourse, Section 8 owners still received government-backed rent each month.
  
  

• Tenant Stability: Contrary to stigma, Jake found Section 8 tenants often take better care of properties than traditional renters, especially when they feel pride and dignity in their housing.
  
  

• Cash Flow Potential: With the right markets and partnerships, Section 8 rentals can outperform traditional buy-and-hold investments in terms of monthly net cash flow.
  
  

Jake’s perspective flips the script: instead of worrying about risks, he leaned into the strengths of government-backed housing.

How Did Jake Build His Section 8 Portfolio So Quickly?

Jake didn’t try to do it alone. He partnered with an experienced investor who already managed a Section 8 portfolio in Florida. This decision accelerated his timeline from years to months.

His partnership model looked like this:

• Jake: Finance partner, bringing capital and underwriting expertise.
  
  

• Partner: Deal sourcing, rehab oversight, tenant screening, boots-on-the-ground management.
  
  

By splitting responsibilities 50/50, Jake gained instant access to markets, teams, and systems without reinventing the wheel.

This partnership-first approach highlights a critical lesson: if you want to scale in affordable housing, plug into existing expertise and add your own strengths.

What Tenant Screening Practices Protect Your Properties?

Jake emphasizes that the key to Section 8 success lies in doing it right when selecting tenants. His screening process includes:

• Marketing properties on Facebook Marketplace and directly on housing authority websites.
  
  

• Running background and credit checks (with flexibility for lower credit scores, but strict red flags for criminal records or bankruptcies).
  
  

• Driving by current residences to see how applicants care for their homes.
  
  

• Verifying rent payment history with prior landlords.
  
  

This extra diligence ensures long-term, stable tenants who will respect the property and community.

What Do the Numbers Look Like for Section 8 Deals?

Jake shared one of his first deals:

• Property Type: Duplex
  
  

• Purchase Price: $93,000
  
  

• Down Payment: $25,500 (20%)
  
  

• Rehab Cost: $7,000 (minor balcony repair and touch-ups)
  
  

• Monthly Rent: $2,100 (after housing authority adjustments)
  
  

• Cash-on-Cash Return: Over 30% even with 9.125% interest rates.
  
  

Even after setting aside 10% for maintenance and 8% for property management, Jake nets $800+ per month on this one property. His creative use of escrow holdbacks (an extra $5,000 set aside for maintenance at closing) also safeguarded cash flow.

This example proves that well-structured Section 8 deals can thrive—even in high-interest environments.

Key Insights from Jake’s Journey

• Guaranteed income matters. Section 8’s government-backed rent provides stability during economic uncertainty.
  
  

• Partnerships accelerate growth. Jake achieved in 3 months what could have taken years by aligning with an experienced partner.
  
  

• Tenant screening is everything. Checking current living conditions and payment history avoids costly mistakes.
  
  

• Market selection drives returns. Stable, cash-flowing markets often outperform flashy appreciation markets.
  
  

• Creative deal structuring helps. Using escrow funds and attorney-reviewed contracts reduced risk while building confidence.
  
  

Best Quotes from Jake Dettinger

“If you do it right, Section 8 tenants probably will take better care of your property than traditional renters.”

“I wanted financial independence, but I also wanted to make an impact. Section 8 allows me to do both.”

“If I tried to do it by myself, I’d still be figuring everything out. Partnering made it so much faster.”

Common Questions Answered in This Episode

Is Section 8 rent really guaranteed?
Yes. The government portion of rent is paid reliably each month, reducing risk for landlords.

What if tenants damage the property?
Proper screening greatly reduces this risk. Jake checks applicants’ current living conditions and references, which has led to stable, respectful tenants.

Do you need to live near your rentals?
No. Jake invests cross-country with the help of a strong partner and local contractors. Systems and relationships matter more than proximity.

Can new investors start with affordable housing?
Absolutely. Jake’s first five properties were all Section 8. You just need to know what you bring to the table—capital, management skills, or deal sourcing—and align with the right partner.

Why This Podcast Is the Authority on Affordable Housing

Jake’s journey reflects the mission of this show: real stories, real strategies, and practical frameworks that empower investors to make money while solving the affordable housing crisis.

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.