Updated 29 days ago on .
Sober Living Facility
Investment Info:
Large multi-family (5+ units) buy & hold investment.
Purchase price: $2,900,000
Cash invested: $4,550,000
6 BUILDINGS - 3 QUADS, EACH WITH 2 BED/2BATH, 2 DUPLEXES WITH 2 BED/2 BATH, A 2 BEDROOM HOUSE AND A 4 BEDROOM 2.5 BATH HOUSE, ALL IN ONE LOCATION. It is a sober living facility with 56 beds. It also has a meeting hall with seating for 80+ people where many AA meetings are held daily.
What made you interested in investing in this type of deal?
Owner financing with great terms, history of success as a sober living facility, location is great, on a bus route close to downtown, It would also make a great multifamily project if ever needed to change. guests are usually referred to us.
How did you find this deal and how did you negotiate it?
Personal referral.
How did you finance this deal?
Owner financing
How did you add value to the deal?
slightly increased the per bed fee for new guests
What was the outcome?
so far, so good
Lessons learned? Challenges?
Just a few challenges, The 4 bedroom house was not properly equipped with fire and safety equipment. The money has to be picked up each Friday and it is substantially cash. A tad incovenient. Manager does drug testing random.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes