{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Affordable Housing & Real Estate Investing","title":"Where are Section 8 Investors Buying in 2026?! ROI for HOA Rentals in NC: 11.7% & 6.25%","html":"","width":"100%","height":180,"duration":3659,"description":"On the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, Mike Caggiano returns for his fifth appearance to break down two real deals he just closed in Raleigh, North Carolina and explain why condos and townhomes with HOAs outperform single family rentals for Section 8 investing.Mike has been buying Housing Choice Voucher properties across Maine, Greensboro, and Raleigh for 18 years without a single special assessment. In this episode, he walks through the exact numbers on two townhome purchases in the same complex in North Carolina: one at $236K with a 6.25% cash-on-cash return and one at $220K with an 11.7% cash-on-cash return. He covers current DSCR loan rates, how to use seller concessions in today's buyer's market, why HOA-3 insurance costs 30% of a comparable single family policy, and how to have a tenant lined up before you close.Common Questions This Podcast Episode Answers:What is a DSCR loan and how does it work for rental property investors?A DSCR (Debt Service Coverage Ratio) loan qualifies based on the rental income of the property rather than the borrower's personal income. Mike is currently closing DSCR loans at 6.375%, nearly equal to conventional investment property rates of 6.5%, because mortgage lenders are actively competing for buyers in a slower market.Why do condos and townhomes with HOAs make better Section 8 rentals than single family homes?HOA communities eliminate the biggest maintenance expenses for landlords: roofs, driveways, sidewalks, siding, windows, gutters, septic tanks, and foundations are all covered by the HOA. Landlords are responsible only for walls in. This reduces maintenance reserves from the 25% typically needed for single family rentals down to around 1% of rents for Mike.How do you protect yourself against HOA special assessments?Add a loss on assessment endorsement to your HOA-3 insurance policy. Mike pays $6 per year for $50,000 in...","thumbnail_url":"https://img.transistorcdn.com/xDB8QhkLtarSR6cPw7Foe38b-OmGTS01-PZeGTtWOaw/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS9zaG93/LzQ2NDA2LzE2OTg0/NTU1NDQtYXJ0d29y/ay5qcGc.webp","thumbnail_width":300,"thumbnail_height":300}