Affordable housing and passive income often feel like separate conversations in real estate investing. Emanuel Stafilidis, founder and chief investment strategist at Capable Capital, has built a way to merge the two through the PASS system—Passive Affordable Seller-Financing System. In his conversation with Jonathan on Zen and the Art of Real Estate Investing, Emanuel explains how PASS not only helps investors create true passive income but also opens the door to homeownership for people underserved by traditional lending.
The strategy is straightforward but powerful. PASS focuses on acquiring homes under $100,000, many closer to $60,000, in landlord-friendly markets throughout the Midwest and South. Instead of renting them out and dealing with constant turnover, Emanuel sells the properties through seller financing. Buyers make a more substantial down payment than they would with a rental deposit and assume responsibility for maintenance. This simple shift creates long-term stability. For investors, it means reliable monthly payments without surprise repair costs. For buyers, it provides access to a home they might never have qualified for through a bank.
What makes the model so impactful is the financing gap it fills. Banks generally avoid loans under six figures because they generate less profit. That leaves thousands of families and even small-scale investors unable to secure funding. PASS provides a solution, allowing people to purchase homes, build equity, and take pride in maintaining their properties. Emanuel points out that this sense of ownership dramatically lowers turnover compared to traditional rentals. In many cases, buyers stay for decades, making the investment side truly passive.
Emanuel’s journey to creating PASS wasn’t without its challenges. Growing up in a real estate family in Australia, he had exposure early on but struggled with money management. He admits that his biggest mistakes came from poor financial discipline—spending instead of reserving funds for future expenses. Over time, and with the guidance of mentors, he learned how to separate investment funds from personal spending, a shift that transformed his ability to scale. Today, mentorship remains a cornerstone of his business, from learning how to structure Capable Capital’s fund to refining his capital-raising approach.
Beyond solving challenges for buyers and investors, PASS has also attracted a growing number of high-net-worth individuals who prefer to participate passively. Through Capable Capital’s fund, investors can benefit from seller-financed cash flow without needing to manage deals directly. Emanuel emphasizes that whether someone wants to buy properties outright or invest through the fund, PASS provides a stable, long-term alternative to the volatility of traditional rentals or large multifamily projects.
Ultimately, PASS represents a win-win. Investors gain consistency and reduced risk, while buyers find a path to homeownership in markets where banks won’t lend. As Emanuel notes, the true reward goes beyond money. It’s seeing families settle into homes they can call their own, while investors enjoy the peace of mind that comes from a system designed for stability.
For those looking to expand their real estate strategy, PASS offers a compelling way to achieve passive income while making a tangible difference in the housing market.
If you want to learn more about Zen and the Art of Real Estate Investing Podcast, check out https://zenandtheartofrealestateinvesting.com/podcast/276/.