Practice And Preparation For The Road – Flips And Section 8 Close-up
Entrepreneur of the Week: OfekMolekandoff | Post #4
Practice And Preparation For The Road – Flips And Section 8 Close-up
Beyond values and big ideas (which are great), I also wanted to bring in some real-world practicality and value.
So if you’re curious about flipping houses or Section 8 rentals – here are a few personal field insights:
Flips – Buy, Renovate, Sell
At its core, flipping isn’t unique to real estate. People flip cars, phones, furniture – the concept is the same:
Buy low, improve, sell high.
Here’s a real example from a recent deal:
Purchase price: $110,000
Renovation cost: $120,000
Sale price: $332,000
The simple math shows a gross profit of $102,000.
But that’s not net profit. You’ve still got to deduct: Attorney fees, closing costs, insurance, realtor commission, surprises… 
Any investor who’s done a few flips knows – no deal goes exactly like the last. There are always unexpected challenges.
If you want to do a good flip, you need to be deep in the details:
ARV is king 
– Knowing how to accurately (and conservatively) estimate After Repair Value is the key to making money.
Small details matter – In the renovation, supervision, and project management.
Advantages of Flipping:
Fast capital growth – often double-digit ROI 
Short investment timeline (typically 8–12 months)
You’re building a real business
You create the value – not just wait for market appreciation
Disadvantages:
Active investment – you must be hands-on
Contractors = 70% of success – you need to pick and manage carefully
Market-sensitive – a price drop can wipe out profits
Bottom line: Great for those starting with limited capital who want to grow it fast – just know the real cost.
Section 8 Rentals – Long-Term Buy & Hold
My first real estate deal was a Section 8 rental. Here’s the breakdown:
Purchase: $53,000 (off-market deal)
Rent: $800 (with Section 8 tenant)
Today: Property is worth over $70K and rented for $1,000/month
What is Section 8?
It’s a government program that subsidizes up to 70% of rent for low-income tenants (e.g., single parents, disability recipients, etc.).
Example: Rent is $1,000 – tenant pays $300, the government covers $700.
Advantages:
You often get above-market rent (FMR) – to incentivize landlords
Tenants are motivated to take care of the property – if not, they lose the voucher
Stable cash flow – even if the tenant doesn’t pay, the government pays their portion (and in some cases 100% – like during COVID or after job loss or surgery)
Rent pricing is based on number of bedrooms, not square footage – smart investors can increase returns by optimizing layout
Disadvantages:
Section 8 has strict inspections before move-in. The property must pass a government checklist – not complex, but you need a contractor who knows how to meet the standards
There’s an annual inspection to ensure the home is maintained – I actually see this as a benefit, it keeps me accountable
Lately, it’s become harder to find available Section 8 tenants, since more investors are entering this space
Got questions? DM me or reach out on Instagram — I regularly share insights from the field:
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