By: Maria Williams
A great deal of stigma surrounds those who acquire and then live in Section 8 housing, and no one knows this better than Karim Naoum. Under the brand Section 8 Karim, Karim has worked to provide safe, quality, and affordable housing by purchasing and providing Section 8 rental housing.
How Karim Started
Karim states that he started the process of becoming a Section 8 housing provider by working as an employee for the government. Once he understood the system, he began acquiring Section 8 rental properties at a young age.
“I achieved true financial freedom without needing a boss to tell me what to do, all while providing quality housing for individuals in need,” he says.
However, one of Karim’s biggest challenges was beginning his career in Section 8 at a young age, as well as creating a system that worked for scalability. He also says that building a team completely out of state to manage his properties was something he had to struggle with early on.
“I’m an individual who worked within the government, so I feel I have a significant advantage within the Section 8 program over other individuals who buy Section 8 properties and teach about them,” Karim states.
Creating his Section 8 business
Through his work with the government, Karim learned the ins and outs of the Section 8 housing program. With his work on Section 8 Karim, he shares a number of valuable tips with people who have worked with him, including the fact that one can negotiate rent with Section 8, as well as how to pass inspections and even complete the paperwork associated with it.
As the youngest Section 8 landlord in the state of Louisiana, Karim owned 100+ properties by the age of 22. Karim’s process involves buying single-family, sub-100K homes in landlord-friendly states using DSCR loans, which use the property’s rent to qualify for the loan. He adds that he usually only places $8K to $12K down on these homes while living completely out of state, all without seeing them for his recession proof blueprints.
How you can get started with Section 8 Rentals
Karim utilizes a variety of tools to find and purchase his properties and then utilizes them as Section 8 housing. HUDUSER.GOV is one of these resources. There, he can find heavily discounted, off-market properties. Incfile.com is another site Karim utilizes, where an individual can set up an LLC with less than $100 down.
Spotcrime.com is also an invaluable resource for checking the crime in the city where you’re buying your properties, as is thumbtack.com, where you can find property managers willing to work with you.
Karim notes that while the stigma behind Section 8 tenants is present, it is not always true. According to him, the average Section 8 tenant waits about 10 to 15 years to get approved for the process, and most applicants will not want to jeopardize getting kicked off of Section 8 by ruining rented properties. However, through all of this, he cautions people to be careful and learn to understand the Section 8 process.
“One simple mistake could cost $10,000 when buying rental properties,” he says.
Karim shares more information about his process on both his Section8Karim Instagram and TikTok profiles, all while providing personal experiences and background to those looking to start their own Section 8 housing business.
Published by: Martin De Juan
