How Andre Calloway-Cazares Built a $1.7M Portfolio with Section 8 Rentals and Smart Tenant Screening

Why This Episode Matters

On the Affordable Housing & Real Estate Investing Podcast, host Kent Fai He sits down with Andre Calloway-Cazares, a young investor from Los Angeles who turned his drive for financial freedom into a $1.7 million affordable housing portfolio in St. Louis. Andre shares how he moved from corporate sales into real estate, what he learned through Airbnb rental arbitrage, and why he shifted toward Section 8 long-term rentals for stability and scalability.

This episode matters for investors, developers, and advocates who want to understand how affordable housing can generate consistent returns while also providing reliable homes for families. Andre’s journey highlights the reality of tenant screening, Section 8 inspections, and the mindset needed to transition from analysis paralysis to action.

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 Andre Transition from Corporate Sales to Affordable Housing?

Andre started in retail, worked his way into corporate sales, and eventually hit the six-figure salary he thought would change his life. Instead, he realized $100,000 a year wasn’t enough for financial freedom or generational wealth. After funding his brother’s private school and living through sudden changes in commission plans, Andre decided to build passive income through real estate.

His first attempt at investing was almost a duplex in Cleveland that met the 1% rule. But fear, limited savings, and lack of a strong property management connection kept him from pulling the trigger. That deal taught him two lessons: always have reserves and always talk to your property manager early.

What Did Andre Learn from Airbnb Rental Arbitrage?

Like many new investors, Andre tried short-term rentals. He leased furnished apartments in Iowa and Atlanta, then sublet them on Airbnb. While he generated some cash flow after cutting out property management, the stress wasn’t worth it. Early morning texts, guest lockouts, and the constant need to respond for Superhost status made the “passive” income feel like a second job.

His conclusion: arbitrage is a business, not an investment. The real wealth comes from owning assets, not renting them.

Why Did Andre Choose Section 8 Rentals in St. Louis?

When COVID shifted rental dynamics, Andre saw market rents weren’t keeping up with home prices. A $100,000 house renting for $900 barely covered expenses. But with Section 8 vouchers, that same home could rent for $1,200–$1,300 a month, creating real cash flow.

He discovered that:

• Demand was high—30+ applications in a single day.
  
  

• Section 8 tenants often value their housing more than market-rate tenants because losing a voucher is costly.
  
  

• Government-backed rent payments provided stability, especially in uncertain markets.
  
  

By focusing on turnkey homes with modern finishes, Andre positioned himself as the landlord offering the best-quality homes in the program.

How Does Andre Screen Tenants and Property Managers?

Andre emphasizes that tenant screening is the key to success in affordable housing. His process includes:

• Checking for felonies and convictions.
  
  

• Reviewing move history to avoid tenants who frequently relocate.
  
  

• Visiting the tenant’s current home (via video walkthrough from his property manager).
  
  

• Using AffordableHousing.com for listing and automated screening.
  
  

For property managers, Andre looks for:

• Use of modern software.
  
  

• Experience with Section 8 inspections.
  
  

• Ability to handle evictions.
  
  

• A “one-stop shop” approach for maintenance and vendor management.
  
  

What Do Section 8 Inspections Look For?

During his first inspection, Andre flew to St. Louis to watch the process firsthand. Inspectors check for:

• Working stove and fridge.
  
  

• Every door and window locking properly.
  
  

• Functioning outlets.
  
  

• Bathrooms with either a window or exhaust fan.
  
  

They don’t care about granite countertops, but Andre still invests in nicer homes because quality attracts better tenants and builds long-term equity.

Key Insights from Andre Calloway-Cazares

• Cash reserves matter more than income. Focus on building liquidity before pulling the trigger.
  
  

• Owning beats arbitrage. True passive income comes from property ownership.
  
  

• Section 8 demand is massive. Voucher holders are highly motivated and reliable when screened well.
  
  

• Tenant screening protects your investment. Home visits and strict criteria reduce risks.
  
  

• Property managers make or break you. Choose partners who know the Section 8 system.
  
  

Best Quotes from Andre

“I realized $100,000 a year wasn’t freedom, it was just survival. I needed assets to create a lifestyle.”

“When you buy a home for Section 8, you’re not just filling a unit—you’re changing someone’s life while securing cash flow for yourself.”

“Cash flow isn’t everything for big investors, but for me it was the only thing. I needed income to cover my lifestyle before chasing appreciation.”

“Tenant screening is not about credit scores alone. It’s about stability, history, and character.”

Common Questions This Episode Answers

How do I start investing in Section 8 rentals?
Begin by researching local housing authority requirements, list your property on AffordableHousing.com, and work with a property manager experienced in vouchers.

Are Section 8 tenants risky?
When screened properly, voucher holders are often more stable because they don’t want to lose their housing benefits.

What should I expect during a Section 8 inspection?
Inspectors check for functional safety features—locks, outlets, appliances, and ventilation. Cosmetic upgrades are optional.

How long does it take to place a Section 8 tenant?
Andre’s first placement took five months, but once he streamlined the process, applications came quickly and consistently.

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.