If you want to rent to this population, there are grants and loans to help you provide a recovery atmosphere. You need to get hold of Leskos Free Money books (matthew lesko) and also see what is out there through the Health branch of the government, not just the housing branch. Wish I could be more specific, but this is as far as I have gotten with this search for myself.
I recently heard of a program that allows you to rent to recent grads of drug and rehab programs. You divide your single family home into (at least 3) rooms and each pays you a weekly stipend. My question is how do you get involved in one of these programs and what are the details behind it. Thank you.
Don’t forget zoning issues and insurance! - Posted by MicheleCO.
Posted by MicheleCO. on June 01, 2002 at 19:30:24:
In all the counties here and around the Denver area, there are strict requirements that do not allow for the zoning of these types of houses. No halfway houses, group homes, mother programs etc…are allowed. Also the insurance needed is a huge cost to consider. MicheleCO.
Although I do not work this arena personally, I do know a local investor that does (quite successfully I might add). He has a couple large multi-unit building that he bought via a lease/option, we’re talking roughly 400 units total. He leased the building from out of state investors who were having serious vacancy problems. Very motivated sellers!
I don’t know the exact details but most residents are ordered to stay in a halfway house as a ‘clean’ environment. This is generally a court order as a probationary term. The halfway house is responsible for monitoring the resident progress, if someone is caught violating the house rule they face stricter punishments possibly jail time. An operation that large will definately require employees 24/7.
The upside: each unit can be occupied by 3-4 residents paying a weekly rent that is generally much high than market rent. Essentially, he took a delapidated high-vacancy building, leased it with an option far below FMV, applied a new scope of business to it, got it 50-60% occupied and refied at full market value. The refi gave him enough capital to complete the rehab, purchase and rehab the 2nd building and a huge reserve for the business.
I’m kinda rambling about this, but the point is this type of business can be run successfully and can be highly profitable. Personally, I’m like Joe, I’ll pass.
You would probably need to speak with someone within the court system to find out the initial requirements. DUIs, possession of illegal substances, etc. is probably what you’re looking for. Talk to the trustee of the court that handles these cases.
Recent grads of drug rehab programs? Where do I sign up?!?!
But seriously, the point, Chris, is to make it painless. You do that by having a plan that results in a deposit showing up into your bank account month after month without you doing anything at all (actually, I do have to click on the monthly email notice that a payment has been received, but that’s not so bad).
To pull that off you need tenants who are trouble free. Can you see how a rooming house with recent drug addicts would not likely fit the “trouble free” label?