Thoughts on investing in a group home? Any tips?
@Kendra M Adams Hello Kendra. That is a great idea and good way to give back. Are you looking at government funding?
Many smaller group home operators rent properties from single family owners. From what I have heard, it is a great strategy. I had pursued it briefly in the Richmond, VA suburbs before moving on due to lack of passivity (finding providers and homes is more active than I was ready for at the time). Once it's setup, it's usually a good tenant.
The tips I heard (from the housing side). This is in regards to adults with disabilities. Quiet suburbs are preferred. Backyards are a nice value-add. Ranch homes are much easier to get approved. 4 bedrooms are the typical unit type.
Finally, there was a great bigger pockets podcast on this topic in 2015.
Hi Christopher! Yes, I am.
Thank you! I will listen to the podcast
Hi Glenn! What are some of the issues you came across that you wish you had known about when you first started out?
My parents own the group home that my brother lives in. Only reason why she doesn't make a ton of money is because she feels bad charging high rents. Income is essentially guaranteed since it comes out of the tenants benefits. Plus, you can usually get 24/7 nurses who live in the home as well (typical 2 people doing 12 hour shifts), so deferred maintenance is also minimized.
@Kendra M Adams No big issues, mostly all upside.... rent in full every month and on time. Minimal turn over therefore minimal get ready cost between tenants. Make sure the company is on the lease and not the individuals. That is a non starter if the company won't take responsiblity for the property. The tenants are NINJA's.... no income, not job or assets. There guardians will be close to the same which is why they are on the tax payer's dime.
Any grants or funding available to rehab a property to meet occupancy, code compliance, and other layout access needs.
Im looking at an investment property that would make a great group home. Property needs about 80 to 100k in rehab and interior buildout to make seperate living space.
@Ian I Leinwand I don't do anything special and don't know of any special funding. I start with the company telling me what they need. I don't buy something then try to find a renter organization. You have to allow reasonable accommodations to facilitate people's special needs such as widening door ways but you don't have to pay for it.