Former HUD Employee Section 8 Karim Scales to 100+ Doors Using Insider Strategy

For many, the world of real estate appears to be an untouchable market. However, there are those who have been able to carve out opportunities in places that many would never consider. Section 8 Karim, founded by Karim Naoum, achieved this by utilizing his experience in the Section 8 housing program (HUD).

Early Inspirations

Karim’s work in the Section 8 housing program allowed him to understand the system early on–and from a young age, he worked to acquire Section 8 rental properties to scale his real estate passions into a business.

“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.

Despite this financial freedom, Karim says that starting so young meant that he had to work to create a system that works for scalability, all while building out-of-state teams to manage his properties. However, even with these challenges in place, Karim has not backed down. He was the youngest Section 8 landlord in the state of Louisiana at one point, and by the age of 21, he owned 100+ properties and mentored over 1000 students with a 92% success rate.

The Stigmas of Section 8 Housing

Karim is no stranger to the stigmas surrounding those obtaining Section 8 housing. With many scared to rent to Section 8 tenants, those who are down on their luck often wait years on end to be placed in Section 8 homes. Karim states that your average Section 8 tenant waits anywhere from 10 to 15 years to get approved for the process, and as a result, he says applicants don’t want to jeopardize their homes by ruining the properties they live in.

“Average Section 8 tenants stay in a house for 7.5 years,” Karim says, and adds that “the government pays 10% to 30% market rents, [which is] guaranteed directly from the government.”

Exploring Section 8 Housing as a Business

Karim built his business on Section 8 properties: single-family, sub 100K, in landlord-friendly states. He adds that he’s utilized DSCR loans that factor in the property’s rent to qualify for the loan.

“The barrier to entry is low,” Karim says, “because I usually only put $8K to $12K down per deal.”

He also buys these properties without ever seeing them but warns people to exercise caution when working within the Section 8 system. “One simple mistake can cost $10,000 when buying rental properties,” he says.

There are many resources one can use when looking to branch out into the Section 8 housing program. One such resource is HUDUSER.GOV, as well as Investorlift.com, where Karim says you can find rents and heavily discounted off-market properties.

Other resources include Incfile.com, where you can set up your LLC for under $100, and Spotcrime.com, where you can check the crime statistics in the city where properties are purchased.

Finally, he adds that Thumbtack.com is where you can find a property manager, and Affordablehousing.com is where you can rent properties out to Section 8 tenants.

Though the stigma surrounding Section 8 housing is still prevalent, Karim has created a business out of helping those less fortunate. With plans to create a Section 8 investment firm in the next one to two years, Karim has leveraged his experience within the program to build himself a secure financial future, which he works to share with others in videos and posts on his Facebook (NASDAQ:META) and TikTok profiles.