TRANSITIONAL HOUSING ANYONE?

[Karen Margrave]

Have any of you rented homes to those doing transitional housing? I know a lady that had housed women coming from abusive situations, or coming from being homeless, etc. and rents bed space to them. There is a tight market for rentals in the area. As investors, would you consider purchasing a home that was rented for such a purpose as a buy/hold? Would you charge higher rents than if it were rented to one family?

If there were a new house built for a specific use as that (several larger rooms to accommodate 2 renters) plus common living areas and kitchen, do you think it would be marketable?

[Tom Meade]

There are a few threads on this topic I believe. This can be a very profitable business but you absolutely have to know what you're doing, or partner with an operator who does.

Transitional housing, Halfway houses, rooming houses, recovery or 12-step houses. These are all different twists on the SRO (single room occupancy) or shares housing model. Each tenant may have their own room or share a room, but definitely common kitchens, baths and living areas. As the operator, you may provide some tenant services (eg counseling or food pantry) or none at all - such as in a straight rooming house.

Try searching BP and the internet for some of those terms and you should find lots of info. Let me know (with an @ tag) if you have any specific questions I might be able to answer.

Good luck!