🚀 Scaling From Section 8 Single-Family to Multifamily and Complexes – Seeking Real I

[Eduardo Cambil]

Hey everyone,

I'm currently based in Europe and investing in the U.S. through a U.S. LLC with my American partner. So far, we've been acquiring small rental properties (mostly owner-financed deals) to rent to Section 8 tenants, generating consistent monthly cash flow.

We’re following a simple but powerful model:
👉 Buy small units cheap
👉 Rent to reliable tenants through the HCV program
👉 Scale unit by unit using limited capital

Now I’m preparing to scale into multifamily (8–20 units) and eventually into larger complexes (40+ units). I know the transition requires more capital, so I’ve been researching funding strategies beyond traditional loans or waiting to save up.

💭 I’ve heard of a few strategies that sound possible but challenging:

1. Working capital loans from companies:

   • For example, borrowing $100K comes with a $14K origination fee,

   • And you’re stuck repaying principal + interest over 7 years.
     ➤ That kind of structure kills the cash flow on most value-add deals, especially early on.

2. Credit card cash-outs:

   • 0% interest for 12 months, some people pull $20K this way.

   • Sounds creative, but you still need strong personal credit or existing capital.

   • It also feels more like a hack than a long-term strategy.

❓My main question is:

Where do real estate investors find those early-stage capital partners who are willing to:

• Lend $50K–$200K to close a deal

• In exchange for equity + share of cash flow,

• Then get their capital returned via refinance within 12–24 months, with some additional return

I’ve heard of syndications and preferred equity splits — but I'm not sure how to structure this for a small multifamily (e.g., 8 units for $500K).

🔍 Example:

Let’s say I find a solid 8-unit property worth $500K:

• I borrow $100K from an investor to cover down payment + rehab.

• I operate, stabilize rents, and increase NOI.

• After 18 months, I refinance and pull out $120K.

• I return the investor their $100K + agreed return.

• I keep the asset and future cash flow.

Same concept could apply to a 40–50 unit complex where I raise $500K from 3–5 people instead of 1.

🧠 Questions for experienced investors:

• Is this a common model for new operators scaling from SFR to multifamily?

• Do most people skip DSCR or bank loans because of friction or limitations (e.g., foreign ownership, income docs, timelines)?

• Where do people usually find those early investors willing to fund deals based on equity or preferred return?

• Any pitfalls I should avoid if I plan to refinance them out within 1–2 years?

I’m committed, doing the work on the ground, and learning as fast as I can — just looking for the smartest, most repeatable path to go from 8 doors… to 80… to 800.

Thanks so much in advance. Open to feedback, ideas, and connections.

– Eduardo