Affordable Housing Construction

[Canesha Edwards]

Hello BiggerPockets Family,

I have been on the site for a while but have never pulled the trigger on buying a property, mainly because I couldn't decide on a niche or what direction I wanted to go. However, I glad to say that I think I have finally found my calling.

I've been doing research on Affordable Housing and in my opinion we are headed for a crisis. This is something I am seeing first hand in the Atlanta market.  So, I plan on developing affordable housing units. This would include SFRs, townhomes, multi-family, etc.  I would develop the property from start to finish ( buying land- completion of the building).  I know this is a great undertaking for someone starting out, but I believe in the purpose and there is a definite NEED. I'm not just talking about Section 8 housing either. I am looking to cater to a particular market at a certain price point within city limits and neighborhoods where gentrification is taking place and displacing long time residents.

I would love to hear from anyone who is currently operating in the affordable housing space. Builders, lenders, agents etc.  How are you funding your deals? If you are receiving grants, what is the process like? Dos & Don't? Success stories, etc. All feedback is greatly appreciated.

[Keri Middaugh]

I am so pleased that people are talking about affordable housing!  There is a lack of this type of housing in Washtenaw County, Michigan (Ann Arbor, Ypsilanti, Saline, etc).  All the developers are building luxury homes that the average person cannot afford (nor does he want to).  It's unfortunate that the smaller profit margins are driving developers (even flippers) away from modest home projects.  I work as an agent, landlord, and flipper, and I hear every day of people looking for more affordable housing.  In fact, I just lost a client to Cleveland where she will be renting a very cute home for significantly less than in my area. My portfolio of rental houses is consistently full because my tenants want to stay due to the decent quality of my homes and the reasonable rent rate that I charge.  I think investors need to step back and see their role in the larger picture of our local economy.