I'm sorry if this topic is ridiculous .. I just bought a house in the city and came home one day to talk to the guy who owns the house next door.
Says he started a social service and bought up properties to rent to people who are autistic .. Has a 24/7 caregiver on site
Told me he wouldn't take $5k/mo, $6k, even $7k if someone came and offered to rent.
So assuming he takes in more than $7k/mo, How much legitimacy is in this? Anybody do this or know anyone who has?
@Chris Purcell I can.t sat for certain but he may have a contract with a social service entity who pays him to use the residence as a "group home" for individuals with special needs. They have these for different situations I.e transitional housing for battered women etc. to name an example. I suppose it can be lucrative but you are reliant on the agency who contracts with you to continue to get funding. Those leases usually have some type of appropriation clause which allows for them to cancel if funding isn.t received. Can.t say for certain that is the man.s situation but I have seen that before.
@Chris Purcell Not ridiculous at all, this is exactly what I do. I find/buy the house that meets the needs of the tenants ie. near a bus line, no stairs, etc. that the organization (often a non profit org.) then rents from me. They use my lease and there is no clause about funding, it's a normal lease. My rents are commensurate with the rents of the local market. They rent for $900 to $1550 with the average being around $1150 for a 3 bedroom. The organizations gets paid by Medicaire and other funding sources to provide the care for the individuals. The rent physically comes from the organization but the individuals actually pay the rent through the org which acts as the "payee". The individuals get social security disability, food stamps, discounts on utilities, etc. and sometimes financial help from their family. The best thing about this business arrangement is, as a landlord, you know you are going to get paid and the turn over is exceptionally low.
From the conversation I had with him, it seems like he was charging WAY above market rents, let say 3x-4x market.
Does this sound right?
Chris it may just be the grammar in how you typed it. But it almost sounds to me like he would rather help these people vs take 5,6,7k in profit....?
Hey Ryan .. from a 2 min (but vague) conversation he talked more about the business aspect than the humanitarian aspect.
If you can combine both, seems like a win-win?