Would U Buy Turnkey Homeless Multiunits?

Question

What are the pros and cons of buying Multiunit property, dedicated only for homeless ppl, who pays by vouchers from city for living there and property generates juicy income...

James De Stefano · Answer

I had to click on this thread due to it being the most confusing Title i've ever read.

Now that it actually makes sense... I would say No.   That, or really get advice from Section 8 threads or any local investors that have dealt with homeless vouchers.

Seems like Juicy problem and headaches to me

Grey Stone · Answer

Yes! But I would start small if you have not worked with lower income tenants. Lower income does not make a person bad, but the screening is different. The red flags are different. In my area, they make it very attractive to work with people that are homeless because their is a strong stigma against what it actually means. I used to think all homeless were mentally ill, druggie, and filthy. And it really is not true. There are people out there that have just fallen on hard times and need help. Many of the people that I have met on HIP are living with family or working with domestic violence non-profits. And again, the red flags are different. There are plenty of people I cannot work with because it does not fit my guidelines for how I run my business. I would strongly recommend starting with a sfr, duplex or partnering with someone that has experience before going into a large deal. There's a lot of money being poured into programs like this in California and you can do very well with this niche. Good luck!

Corey Hawkinson · Answer

@Adam Blachnio I own a 4-unit property that is dedicated to this type of housing. I am looking to buy more properties specifically for this type of investing. So clearly I enjoy this and the return makes it worth it in my opinion. My state calls the program Housing Support. (Though most MN people still call it GRH which is the former name)

There are several things to consider. The main question has already been brought up, the pre-maintenance cash flow needs to be higher to be successful. This is NOT passive investing!!! I have been to that property 12 times since December 1st, including Christmas Day. And no, I wasn’t dropping off presents to my tenants. Ha!

Please feel free to reach out and I can share more from my experience. There are certainly things to look out for! There are also things I recommend that can make you successful. (This goes for anyone stumbling across this post. Feel free to PM me if you’re interested in this type of investing.)

Darius Ogloza · Answer

Yes, but only if I were writing a novel.

Dennis Cosgrave · Answer

We all know that city and state tax revenues are under duress as a result of the lockdowns and subsequent business closures. There is no guarantee that the municipal or state government will continue to fund these kind of programs, especially when the money runs out.

Amit Ronghe · Answer

@Corey Hawkinsoni just sent you a message. I would like to pick your brain on this topic.

Thank you so much.

Daniel Smyth · Answer

Investing to make a profit. Not investing so my FB friends will say that I am a good guy until I have to evict one of my homeless tenants. ( Where is the profit)

You might do so, only as a tool to present yourself in a better community light, and have a lot of taxes that need to be offset. It's not bad to set yourself in a good public light, but I would rather invest money into a clean water system for community parks, or perhaps suitable public restrooms for these parks. I mean, in my area we have a park that can have more than 100 people playing at a time, and there are no restrooms. It's not like you can walk across the street and ask the neighbor to use the facilities and get a drink of water.

I am in this for financial gain now, or for possible gain to my family when I am gone. I make no apology for this. The people that land me money ALSO do so for the same reason.

Ali Boone · Answer

What's included in that? Does it factor in cleanup and maintenance and whatever costs and all expenses?

Corey Hawkinson · Answer

@Adam Blachnio Yes. Though a social work agency manages finding the tenants and works with them on a weekly basis.

Would U Buy Turnkey Homeless Multiunits?

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