Using the BRRRR Method for a Sober Living Home in Connecticut

[Hunter Foote]

A lot of people ask if you can use the BRRRR method for sober living homes. The short answer is yes, but it takes some extra work.

We did a project like this in Vernon, Connecticut. It started with a tired single-family home that needed a full rehab. We bought it, renovated it to meet sober living standards, leased it long-term to an experienced operator, and then refinanced once the home was stabilized.

The challenge was getting the refinance done. Most banks don't know how to underwrite recovery housing, and it can be tricky to get a DSCR loan when your tenant is a nonprofit or a small operator instead of a traditional renter. It took a lot of explaining to the lender, but once they understood the model and saw the lease in place, we got it done.

That lease ended up being the key. Having a multi-year net lease with a reliable operator gave the lender the confidence they needed. After the refinance, we pulled out most of our capital while keeping the property cash-flowing.

It's not the easiest BRRRR to pull off, but when it works, it's a solid way to build both equity and community impact.

**Has anyone else tried using the BRRRR model for sober living or specialized housing? How did your lender handle the underwriting?**