Anyone experienced with sober living housing??

3 Replies

Hey BP, I have a property under contract and it’s uniqueness has me wondering. The property is close to the local university so I have considered making it student housing. 

I have also considered converting it into a sober living home. Renting by the room and having someone on site as the house manager. 

The property is set up like a duplex with two giant common areas between them. Dual kitchens,beds, baths, living, and dining areas. Both sides have 2 car port with laundry and storage. Ample parking up front and a large backyard with covered Az rooms on each side. 

Any ideas, thoughts, or input would be greatly appreciated. I’ve considered making a more traditional duplex as well as making an sfr with an in-law suite. 

There are options, but an exit strategy that would maximize cash flow and if probably just keep it. Right now it’s up for assignment with a sale price of 310. Estimated repairs of 115 and an arv of 525k on the low end. The neighborhood is desirable, but properties are vastly different nearby and getting a solid comp for such a unique property has been difficult. 

Sober living is WAY more regulated, both by the city and the state. You might be able to command a premium to offset that, but the question is - will it be enough? Even if the numbers work out, will the added work and hassle make it worth your time? 

Student housing is pretty cut and dry. Get each student on a separate lease with a separate guarantor and healthy security deposit, and you'll probably have a nice, steady flow of income indefinitely. 

Duplexes and ADUS, on the other hand, are a hot commodity in Phoenix right now. There just aren't enough of them to satisfy the demand. By converting to either a duplex or a in-law suite, you could either sell right away at a nice premium OR rent out both units. (SFR and ADUs have both been doing very well in the rental market.)

Hope this helps! Happy to answer any specific questions. 

If you're ever looking for assistance, I have owned and operated multiple sober living programs for about 6 years now and also have been in the investor/landlord position across the US. Feel free to reach out to me directly. I may be able to offer some solutions.


Charles Kappe

Founder Connect The Dots Recovery