would you buy a place next to a halfway house?

Question

Sorry, this is a repost (I realized my original didn't have a descriptive title so I changed the title).....

Ok, so I was supposed to close on a duplex this upcoming Thursday.  Today I'm over there outside looking at the place figuring out what I want to do with it, and start taking to one of my potential neighbors.  He asks me if I know what is the deal with the place next door, and I say no - honestly I thought it was a regular apartment building.  Turns out it's a halfway house for bipolar and schizophrenics.  I looked it up and a few years ago one of the patients there stabbed and killed another patient.   The place is right next to to the property I was going to buy (across a quiet street), with a bunch of windows facing the duplex.  I was over there today and a guy was just sitting outside staring at me and my girlfriend.  Creepy.  I can't believe I almost bought this place.  It sucks because it's a foreclosure and a great deal...but I gotta walk away....right?

Bill Gulley · Answer

ROTFLMAO! Just wait, it will get cheaper, then buy it and lease it to the organization running the halfway house call them first,  they are probably a non-profit so you could do a triple net lease. They may not be able to buy but may be able to lease, suggest either more clients or living quarters for staff. Otherwise, walk away. :)

Rob K. · Answer

I own a rental house next door to a group home. The people hang out in the front yard and look like zombies. Fortunately, my tenant has been there for 10+ years. If I have to rent this house in the future, I will try to show it on rainy days when the people are inside.

Dyna J. · Answer

Dont fear for your girlfriends safety. Its a halfway house not a mental institution. If they were completely unstable they wouldn't be there. They, as a group,  are very emotionally high maintenace so expect some drama. It all depends on how tight a ship the staff is running.

Chris Clinton · Answer

Do you have a management company halfway house moved in now there's a lot of problems can a halfway house legally move aside a business that's already in business before the move there please advise what can I do to get them away from me

Matthew Nelson · Answer

This thread is over ten years old haha.. wonder how the place turned out.

But to answer your question I don't think there is anything you're able to do in that situation.. it is always best to speak w/ a lawyer to see if there's any available legal options.

Bill Gulley · Answer

Steve, you might be able to buy thier place, just find them a better facility, and that can be tough, but profitable too. Good luck :)

Steve Paczesny · Answer

Ron Climer, yes I would be buying it to rent.  But I'd be living there as an owner occupant for at least 2-3 years - this would be my first property.  If this place was a house or two away I wouldn't care, but being right next door...I can imagine a high tenant turnover rate, and I'm not sure if I'm required to disclose this to potential tenants or a future buyer if I sell.   Maybe if I can get the bank to drop the price enough, then buy the building in a few years that is currently the halfway house and convert it to rentals...hmmmm.

Karen Margrave · Answer

Lynn M. You bring up another good point. We actually lived in a subdivision one time that had houses with large square footage, and there were 2 women's recovery homes. Neither were ever a problem, and in fact, all the women were very nice. However; there are neighborhoods where there are halfway houses with violent sex offenders, and the neighbors don't even have to be informed, though most are repeat offenders.

I once had a group of counselors want to lease space in one of our buildings. When pressed, I found out their clients were all sex offenders, that had molested women and kids. I told them I wouldn't lease to them. They insisted their clients weren't violent! I responded that I was one of those people that thought the death penalty was appropriate for those crimes, and that ended that conversation.

Lynn McGeein · Answer

These halfway houses are becoming extremely common in many neighborhoods.  We talked to neighbors, asked the condo association all kinds of questions, especially how strictly they enforced the clause about renting to only single family, no non-related roommates allowed, as we are living here for a while but may turn it into a rental.  Turns out, apparently, they can enforce it with owners, but it is illegal to enforce those rules on health services companies, at least in our town.  It also appears we have 4 units rented to these health services companies in our 100+ unit complex.  The condo assoc said they did not have to disclose that to me.  I did my due diligence with crime rates, sex offenders, talking to neighbors and walking the neighborhood different hours and days.  It never came up.  Apparently, most of the owners here still don't know about it.  I only found out after seeing a sign posted on a back sliding glass door (privacy fence gate was open) that said, Residents must smoke outside.  I thought, Wow.  Blatant roommate violation.  Asked the condo board about that unit, and they told me there's nothing they can do, it's the law, but they aren't allowed to have any violent people there.  Haven't had any issues with it.  Just weird that they don't even have to disclose it to you.

Bill Gulley · Answer

Need to look at the obvious, what may appear to be a road block might be a bridge.

I'll bet that the halfway house was established after the duplex was purchased and financed. Highly likely that any future appraisal will mention the halfway house as an external obsolesence issue, a factor that is external to the subject that reduces value.

Had industrial property purchased cheap, a factory a couple lots away and a house on the other side. The factory was an issue, but got the other two owners to agree to sell, then approached the factory offering them the rest of the block, they jumped on it, additional parking for employees (they were parking in the street) and expansion, doubled the money.

As to showings, if you need to go through the red light district or have undesirables in an area, the time you show has an obvious bearing on when to show. Early mornings, such people are usually not out yet, in the worst weather (that is safe) keeps people inside. Realtors are taught too that if they are taking the buyer to a property or they are following the Realtor, to take the route to the subject that shows the best, not the shortest route necessarily. If you don't have to drive by hookers or the back of trashy commercial joints, then don't go that way. :)

would you buy a place next to a halfway house?

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