Have a buyer that rents rooms to veterans for my apartment building.Have you heard of this?

Question

So I have heard of people renting rooms to veterans or the deaf and blind before etc.

If it was trying to load up a bunch of random room boarding I would be worried.

Buyer states they have about 400 properties currently they own.They buy the property and rent out each room to veterans with grant money from the FHA.

After 2 years they refi out with FHA and pay off the owner financed note.They are putting a big chunk of money down.They only focus on veterans for the housing.

Any comments helpful.They are giving me a great price because per room they can increase the NOI much more.

Joel Owens · Answer

Maybe this is what the buyer is referring to.

http://www.va.gov/GERIATRICS/Guide/LongTermCare/Adult_Family_Homes.asp

Seems like the VA doesn't pay money for the group homes but in addition to room rent you can stick more than one to a room as long as it's not more than 6 people total in the home I believe.The VA looks like they pay for some medical and nursing care though along with insurance company.

Michael Lauther · Answer

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This is the pitch that has been on the internet for more that 6 months but I have never been able to understand how they implement this. I dont usually fork over fees to get this kind of "secret " information but would be interested in anyone knows what they are teaching.

Jason Ferguson · Answer

http://www.va.gov/homeless/landlords.asp

Account Closed · Answer

Group homes in SFHs in residential neighborhoods are a popular investment business model right now.  Seniors with and without health care needs, special needs adults, drug and alcohol rehabiliation, victims of domestic violence....you name it.  The vast majority have an insurance or government or non-profit source that pays the way of the boarders.  It's possible that the VA group homes your potential buyer is running provide more than boarding.  The might also provide counseling, job training or some kind of rehabilitation.  I'm guessing that they are masterful with zoning and special use permits too.  Since you are selling and not leasing, you're off the hook for due diligence.  But if you were leasing, there would be SO many caveats.

Joel Owens · Answer

I also found this which I believe is what they do.

http://www.va.gov/homeless/gpd.asp

Maurice Graham · Answer

I know this thread has been down for awhile yet I have a question. So are you saying that you can rent out a bedroom inside an apartment unit to each veteran?

Anthony Murphy · Answer

I am interested in renting to Veterans also.  I am in MA and am looking for information on how I can get my vacancies on a list for Veterans.  Any info would be appreciated.

Tony

Michael Lauther · Answer

thanks to both Joel and K marie, You helped me get to the right people in my Market. Still interested in the Idea of placing Disabled vets in livable homes. Many are placed in SFHomes one at a time but if we could combine vouchers we could afford to provide better housing at a lower cost.

Joel Owens · Answer

My buildings are zoned multifamily residential 1-4 units.I have 5 buildings 4 units each which is why they are zoned residential instead of commercial.

Joel Owens · Answer

Thanks Marie.I really enjoy your posts and am glad you are contributing along with us and others to Bigger Pockets.

I think this buyer does do extra things for the veterans etc.

Have a buyer that rents rooms to veterans for my apartment building.Have you heard of this?

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