Updated 7 days ago on . Most recent reply
#2 Innovative Strategies Contributor
- Real Estate Consultant
- Worcester, MA
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How I Flipped a Sober House Into a Long-Term Net Lease Investment *3x Return*
#2 Innovative Strategies Contributor
- Real Estate Consultant
- Worcester, MA
In 2022, I bought a tired two-family property in Massachusetts that needed a full rehab. It wasn’t the kind of deal most investors would touch, but I saw the potential to turn it into a certified sober living home.
Over about two years, we renovated the property from top to bottom with safety upgrades, new layouts, and durable finishes designed for shared living. When it was ready, I leased it to an established recovery housing operator on a 15-year net lease with a few 5-year extensions built in.
The operator took over management, kept the home full, and paid steady rent every month. After the second year, I sold the property to an investor looking for a stable, cash-flowing asset with a reliable tenant already in place. The sale price came in at about three times what I originally paid for it.
It ended up being one of my favorite projects because it combined a strong return with something meaningful for the community.
Has anyone here ever invested in or developed a property for sober living or other types of recovery housing? How did it go for you?