Have a buyer that rents rooms to veterans for my apartment building.Have you heard of this?

[Joel Owens]

So I have heard of people renting rooms to veterans or the deaf and blind before etc.

If it was trying to load up a bunch of random room boarding I would be worried.

Buyer states they have about 400 properties currently they own.They buy the property and rent out each room to veterans with grant money from the FHA.

After 2 years they refi out with FHA and pay off the owner financed note.They are putting a big chunk of money down.They only focus on veterans for the housing.

Any comments helpful.They are giving me a great price because per room they can increase the NOI much more.

[Joel Owens]

Maybe this is what the buyer is referring to.

http://www.va.gov/GERIATRICS/Guide/LongTermCare/Adult_Family_Homes.asp

Seems like the VA doesn't pay money for the group homes but in addition to room rent you can stick more than one to a room as long as it's not more than 6 people total in the home I believe.The VA looks like they pay for some medical and nursing care though along with insurance company.