Single room occupancy (SRO) and/or Supportive Housing

7 Replies

Does anyone have any advice on getting started with small multi-unit investing with the ultimate goal of making the property available to agencies for their clients needing SRO and/or Supportive Housing assistance?

I dont have any experience in single room occupancies but I have a buddy in baltimore, Md that is making good profits in his single 8 rooom house with shared kitchen & bathrooms..  

Originally posted by @Ronald Jones :

Does anyone have any advice on getting started with small multi-unit investing with the ultimate goal of making the property available to agencies for their clients needing SRO and/or Supportive Housing assistance?

 Multifamily investing is distinctly different than operating an SRO.

In MF you analyze and manage an asset. With SRO you also have a business operation that needs to operate and manage the property. The operation could be as simple as ma and pa kettle operating their 5 unit building to a large organization employing hundreds of employees.

In downtown Los Angeles the majority of SRO's are operated by nonprofit organizations.

I think your goals are great and I commend you for them. The two things that you should be aware of are how hard is it to change the C of O on the building and is there a community board that would be involved. When you propose to change a three unit multi to a 9 room SRO, neighbors may have something to say about it. Just be cautious and do your homework first.

George Hermann, Halstead Property, LLC

Depending on where you are located this could be an issue for neighbors. I would however start with the housing authority of your city, who will also refer you to other agencies. I know when I lived upstate New York my two family home that I owned, I rented SRO to professionals working in the area as far out as New York City. My relative lives in New York City and she currently does a BB with her 8 bedroom unit and works through Air BNB and is doing very well. Good Luck!

Thanks

for all of your input. Obviously there are many more details that need to be considered and this may very well be overwhelming.  Just for conversation's sake, would the same considerations be valid for transitional housing? 

Thanks @Joe Fairless ...Yes @Ronald Jones I would have to agree with some of the comments for mentioned. In SRO, I am operating it as two business structures (the real estate and the services I am providing)

Early on the biggest obstacles I found was finding consistent clientele to fill rooms, but after building stronger relationships with organizations that provide parallel services for individuals who would need Single room occ that problem began to diminish.