Sober living house

[Amanda Paugas]

Does anyone have experience with owning/managing sober living houses? I’m looking at a portfolio of three homes, buying both the buildings and the business. Quick analysis yields a 16% cap rate, just wondering if anyone has experience with logistics In running these places, paying staff, rent collection, etc. Thanks!

[Steve Vaughan]

@Amanda Paugas I had one all set up until Covid hit and changed my plans.

I was partnering with Oxford House.  I think they operate in 36 states.

I would lease the house to them for an estimated but not guaranteed $x per room.   They apply their house rules to the guests so you aren't stuck trying to evict one that relapsed.   They can remove a guest in 2 hours if needed. 

They require meetings where the house chores and costs are divied up, a house mgr in charge, all that.   The guests pay Oxford, Oxford pays you.    Seemed like they had the process down.