How Richard Thayer Buys Tax Deeds to Create Affordable Housing and Revitalize Communities

Why this conversation matters for affordable housing investors

What if you could buy houses for as little as $8,200 and turn them into cash-flowing affordable housing? That’s exactly what Richard Thayer has been doing for decades. In this episode of the Affordable Housing & Real Estate Investing Podcast, hosted by Kent Fai He, Richard shares how he scaled from single-property deals to buying entire neighborhoods at tax deed auctions.

Richard’s story matters because it bridges two essential truths: affordable housing is both a social mission and a profitable investment strategy. Investors, developers, and advocates will learn how to spot overlooked opportunities, use HUD programs, and strengthen neighborhoods while building long-term wealth

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.

What are tax deeds and how do they create affordable housing opportunities?

Most investors hear about tax liens, but Richard focuses on tax deeds. A tax deed means you’re buying the actual property after the owner has failed to pay property taxes for years. Many of these homes can be purchased for $3,000 to $25,000 depending on the state and condition.

At auctions, properties are often presented months in advance, giving investors time to inspect them, research neighborhoods, and prepare. Richard warns that due diligence is critical—records might list a three-bedroom home when in reality the structure burned down.

By targeting these distressed properties, investors can create affordable rentals at a fraction of replacement cost.

How can investors scale from one tax deed property to an entire neighborhood?

Richard started small, buying one home at a time. As he gained experience, he discovered that counties often stagger tax sales monthly, creating a consistent pipeline of opportunities.

Eventually, he reached the point of buying 30 houses at once—all owned by the same failed investment group. With syndication partners providing capital, Richard supplied the expertise and systems.

His key advice:

• Start with one property to learn the process.
  
  

• Build a track record that proves you can rehab, rent, and manage effectively.
  
  

• Use refinancing and syndication to scale into bulk purchases.
  
  

This method not only grows portfolios but can completely transform struggling neighborhoods.

How do Section 8 vouchers and HUD programs fit into this strategy?

Richard’s tax deed model aligns directly with Section 8 Housing Choice Vouchers and HUD guidelines. He calculates fair market rents and voucher amounts county by county before bidding.

For example, in Virginia, one county’s three-bedroom voucher is $2,000 while another’s is just $980. Understanding this variance helps him maximize returns while ensuring affordability for tenants.

He also taps into HUD disability grants and nonprofit funding. These programs can cover the cost of ADA improvements like wheelchair ramps, widened doorways, and plumbing adjustments. For landlords, this means reduced out-of-pocket expenses and a competitive edge in attracting tenants with long-term housing needs.

What role do neighborhoods and community revitalization play?

Richard emphasizes that affordable housing is about people first, profits second. By investing in older neighborhoods and distressed areas, he noticed something powerful: when one home gets fixed up, neighbors follow suit.

In many cases, community members volunteer to help with renovations or ask advice on improving their own homes. Richard calls it “reviving communities emotionally, not just financially”.

He proves that buying in so-called “undesirable areas” can be transformative. With enough investment, crime declines, curb appeal improves, and the entire neighborhood’s value rises.

What are the risks and challenges of buying tax deeds?

While the opportunities are huge, investors need to know the pitfalls:

• Hidden costs: Old utility bills or code violations can surface.
  
  

• Waiting periods: After purchase, investors may wait 60–90 days for a sheriff’s deed.
  
  

• Occupants: Sometimes squatters or former owners remain in the property, requiring legal eviction.
  
  

• Market declines: If local industries vanish, tenant demand may weaken.
  
  

Richard stresses relentless due diligence—analyzing neighborhoods, employment bases, and HUD voucher values before bidding.

Key Insights from Richard Thayer

• Tax deed investing allows entry into affordable housing with minimal capital compared to traditional acquisitions.
  
  

• Community revitalization often starts with one property and grows organically as neighbors join in.
  
  

• HUD and nonprofit programs provide hidden funding streams for accessibility improvements and tenant support.
  
  

• Syndication accelerates scaling by pairing investor capital with operator expertise.
  
  

• Focusing on people first leads to stable tenants, referrals, and sustainable profitability.
  
  

Best Quotes from Richard Thayer

“As long as you remember that you put the family first, the money will come rushing in.”

“A depressed area isn’t depressed financially. A lot of times it’s depressed emotionally by the people who live there.”

“Never take your eye off helping people. Focus on the people, and you’ll always be successful.”

Common Questions About Tax Deed Investing in Affordable Housing

What’s the difference between a tax lien and a tax deed?
A tax lien is a claim against unpaid taxes, while a tax deed gives you ownership of the property once taxes remain unpaid long enough. With a tax deed, you acquire the house itself.

How much do tax deed homes usually cost?
Prices range from a few thousand dollars up to $25,000 depending on the state, condition, and neighborhood.

Can Section 8 tenants live in tax deed properties?
Yes. Once rehabbed to meet housing quality standards, these homes can be rented to Section 8 tenants, often with guaranteed government-backed rent payments.

How do I avoid buying a burned-down or unlivable property?
Always inspect the property in person, confirm with county records, and budget for unexpected repairs.

Is scaling tax deed investing realistic for small investors?
Yes. Start with one property, learn the process, and build relationships with local banks and housing authorities. Over time, you can use refinancing or syndication to buy in bulk.

Final Thoughts

Richard Thayer’s story shows that affordable housing investing is not just about making money—it’s about creating stability for families and revitalizing entire communities. His tax deed approach proves that with due diligence, creativity, and a people-first mindset, investors can profit while solving one of America’s toughest challenges.

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.