All Forum Posts by: Kayla Givens

@Vatsal Patel I highly doubt it - the sober living model is not something just anyone can do. You're dealing with people that are in a fragile state and need a lot of help and support. As a landlord, yes it can be a good deal but as an operator, there is so much to consider if you're going to do it right. 

Hey @Walker Hinshaw! I am super familiar with this strategy - my fiance and I own and operate 6 sober living homes in the Denver metro area. 4 out of the 6 we own ourselves, 1 we rent and the other is a franchise model.

As far as renting to sober living operators - I HIGHLY recommend considering it! Depending on the operator, typically they are great tenants and will not ask for much. I know for our business we try to be the nicest, cleanest house on the street and if something small breaks, we take care of it ourselves and only call on the landlord for the major stuff. Other have mentioned this but you can rent out your home for something above market - that would be between you and the operator and whatever makes sense for both of you.

Would be happy to hop on the phone and chat more about it and answer any questions you might have!

Thanks, @Dmitriy Fomichenko!

@Bradley Hagen - we run group homes out of our single-family home investment properties so our model is a bit different than a traditional rental. We charge by the bed instead of by the room which allows us to see much higher returns. After our PITI we will see around $5k in cash flow but after all expenses, I'd say we are looking at a little bit closer to $2500-$3k/month. Still not bad for cash flow!

I briefly looked through the ordinance for Centennial and didn't see anything about a limit on the number of licenses in Centennial. There are limits to the number of people that can be at one specific STR - 2 per bedroom not including children under 16.

Hey @Weston Flowers! Welcome to the BiggerPockets community! You're right, there is a TON of information out there and it can feel extremely overwhelming when you're getting started. My advice - keep consuming and learning as much as you can. Eventually, something with pique your interest enough that you'll "go down the rabbit hole" and learn as much as possible about whatever that thing is. 

It sounds like you're in a good position so far - if you're open to it, with little to no capital, you could purchase a new primary residence and rent out your current property. I know of a great lender out here that also offers 100% financing for primary properties (aka $0 down payment) if you buy in a certain area. House hacking (what I described above) is a wonderful, scaleable strategy to get started and is super easy to rinse and repeat. The only caveat being that you have to move every year to build your portfolio until you are able to implement another strategy.

I sent you a DM - would be happy to hop on the phone and chat more about your situation and what might work best for you!

Hey @Roman Puzey! I'm sure that if you find a nice property, furnish it well and price it right, you will have no trouble finding a great MTR tenant. In terms of finding one, it would be a good idea to join some Facebook groups that are specific to medium-term type tenants. There are a lot of traveling nurse groups that you can join and I would see if there's a way for you to network with someone at a hospital near your target area.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $585,000

This is likely the final single-family home my fiance and I will purchase for our portfolio. This home is perfect for our sober living model and we are walking into it with an extra $35k in equity! This property will cash flow like crazy for us - after PITI we will be looking at $5k/mo before expenses.

What made you interested in investing in this type of deal?

This home is perfect for our sober living model and will produce very nice cash flow!

How did you find this deal and how did you negotiate it?

We found this property on the MLS and as the buyers agent, I was able to negotiate almost $12k in concession, and several items from the inspection resolution including a new radon system.

How did you finance this deal?

My fiance took on the loan and our partners brough the down payment.

How did you add value to the deal?

I added value by finding the property and negotiating with the seller!

What was the outcome?

We walked into the deal with an additional $35k in equity and will see nearly $5k in cash flow per month!

Lessons learned? Challenges?

We had some issues with lending - had to switch lenders and loan products throughout the process and it came down to the 13th hour to get the clear to close. Luckily we were able to get everything but it was very stressful!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Me :) I also worked with Pablo Hernandez with HouseMaster for our inspection - he is great and extremely thorough!

Hey, @Roman Puzey! So exciting that you're looking for your first house hacking property! With rates where they are and home prices where they are, it is going to be tought to find anything that cash flows right now. Your best bet is to find something that will make the greatest impact on your monthly payment. Ex: If your mortgage is $3k and you can rent out your basement for $1500, you're left with a $1500 mortgage payment which isn't all bad. 

There are no restrictions on any rentals that are 30+ days (MTR) in the Denver metro area - only less than 30 days (STR). Arvada, Centennial, Wheat Ridge, Unincorporated Adams County are all STR friendly although Arvada has a caveat of only allowing 240 days per year as an STR and Wheat Ridge has likely met the limit for STR licenses by now. MTR is a great strategy and in terms of location, you want to find something that is 10-15 minutes from hospitals. From the nurses I've spoken with, something closer to Denver or the south towns would be your best bet in terms of desirability.

Hope that helps!

Hey, @Ace Kaspar!

Great question! Everyone has a different "why" and I love hearing from other's what got them into it as well.

-I got started in real estate investing because I saw how lucrative it could be and that it would get my to my goals of financial freedom the fastest. Luckily, my fiance and I were able to find a strategy that not only helps us move towards that goal but allows us to help others in need as well (we invest in group homes)

-We chose Denver because we live here and our network is here. We did think about moving to Texas but we're grateful we stayed here as it would have been a LOT more work to build our network and get our business up and running.

-The REI I enjoy the most is what we do now - investing in group homes that help men in recovery from substance use disorder. I am also a real estate agent and love helping first-time or seasoned investors find their first or next property!! It's very fulfilling!!

What got you started?

My fiance and I just purchased a cash-flowing SFH in November and are set to close on another on Friday. Our strategy is a bit different than most but we are not planning to slow down at all this year - if anything we will buy MORE properties this year. "When others are fearful be greedy..." Hope that helps!