Anyone try sober living home?
Hi all - I’m kicking around the idea of buying a big single family home and offering housing for sober living. People in recovery need a place to stay free of drugs and alcohol. From what I understand, it’s common to place 2 beds in each room and charge weekly/monthly. Returns are higher but the downside is that it’s more hands on.
While my primary goal is to make money, I have a soft spot for those with addiction. I see this as a chance to do some good and make better money than if I were to go the traditional route.
Anyone tried their hand at a sober living house? I’m finding it difficult to find examples of people doing this.
Thanks in advance BP!
-Justin
Have you looked into the comprehensive and liability insurance for that type of property/business? I have seen several fail due to lawsuits and insufficent coverage. Have you looked into assited living facility as they are far more profitable?
Sober living facilities can carry a higher insurance cost plus riders due to liability and likelihood of predictable behavioral issues. (Not all states).
Quote from @Justin Sofman:
Hi all - I’m kicking around the idea of buying a big single family home and offering housing for sober living. People in recovery need a place to stay free of drugs and alcohol. From what I understand, it’s common to place 2 beds in each room and charge weekly/monthly. Returns are higher but the downside is that it’s more hands on.
While my primary goal is to make money, I have a soft spot for those with addiction. I see this as a chance to do some good and make better money than if I were to go the traditional route.
Anyone tried their hand at a sober living house? I’m finding it difficult to find examples of people doing this.
Thanks in advance BP!
-Justin
You can run a charity or run a business but you can't do both. Most halfway houses and similar stay solvent through donations, government grants and insurance billing. Few if any make any money. The clientele tend to be habitually unemployed/unemployable and relapse is not uncommon, which often leads to fights, damages, or the revocation of licensing privileges by the municipality. You'll likely have to pay cash for the property as it's unlikely you'll find financing for this type of endeavor.
I would recommend not following this any further unless you want to run a charity. A better idea would be to get a stable of solid rental properties under your umbrella and use the profits if you like to run your recovery home.
#2 House Hacking Contributor
- Real Estate Agent
- Los Angeles, CA
Maybe there is a compromise. I agree with those above that it could be complicated but I'm not in this space. Maybe the compromise is you rent it out to someone experienced in this space. So for you it is hands off but still get the premium rental price. The company can run it who has a proven track record and the necessary insurance in place.
Hey Justin - I converted one of my LTRs so a sober living home for a similar reason. I also care for those looking for a restart, so the mission and purpose resonate with me. Much some of the responses below, there are legal implications to consider.
By a stroke of luck, I actually met a sober living operator at an open house, and we jived well. This timing worked well when one of my rentals had been vacant for a few weeks, and I had trouble finding a good tenant. So it worked out for both of us, and they'd sign a long-term lease.
I'd suggest looking into sober living operators in your area. If you want to chat more about my experience, feel free to DM me!
Hi Daniel!
I'm starting a similar partnership here in August. How do your profits compare to LTR if you don't mind me asking?
And are there any increases in maintenance or other issues you've experienced with the transition?
Thank you,