Halfway House Duplex Investment: Risk vs Reward?

[Joshua Walther]

I'm considering purchasing a "halfway house" duplex. It is leased annually (on both sides) by another LLC that helps rehome tenants, thus acting as a halfway house. I believe this introduces the risk of drug/alcohol/crime occurrences, but it seems like a no brainer deal from the money perspective. Ask is $160k and it is rented for 1k/mo each side, so $2,000/mo total. This would be my first investment, but seems like a very easy deal, and I would assume that the rehoming LLC mainly deals with tenant issues since they are paying to fill the vacancies. I would have to say goodbye to the FHA and go 20% down most likely, but I think it would pay for itself fairly quickly. It went on the market very recently and will probably sell by beginning of next week.

Does anyone have experience with this type of investing? Guaranteed monthly income is very incentivizing for me to pull the trigger.