Transitional living house hack

[Aaron Furr]

Hey BiggerPockets!

  Aaron here. So I'm a newbie, but a quick learner, and motivated investor. I've been running analysis after analysis on rental properties, as that's where I would like to start. Well, I found some really good numbers (in my opinion).

Here it is. It is a 3 bed 2 bath single family home located in a rougher part of town, but also quickly changing area. I ran my first analysis on this property as a single family home, and to my surprise it had a decent cashflow. I know it's not always the better option to chase higher cashflow properties if you sacrifice quality of clientele. But this one is a bit unique.

  Within a mile radius we have 2 bus stops, 4 drug addiction clinics, and a mess of low income citizens in a high incarceration rate part of town. This all being said, there is a lack of functional transitional housing. The ones that are available are severely inflated and someone in need of help such as this cant afford. For those that aren't sure what transitional housing is, it is units that drug addiction recovery patients, recent prison release, or even homeless can rent out with little of their own money.

  Sounds a bit risky given the clientele, but in my town one small unit with a closet and bath can easily get $650-700 per unit. There would be deposit requirements in order to get in. The property in question could be hacked into 4 of these smaller units.

  I'm an active carpenter and have been in the field as lead carpenter and supervisor for the past 7 years. I see all strokes of employees come through. I have 2 currently that stay in a transitional home and claim they were on a 9 month waiting list to get into one. This tells me the demand is there. I want to be the one to fill this void, and I'm extremely motivated to do so.

  If there is someone here willing to help me analyze this property and the numbers behind it, I would be very grateful. Wish you all the best in your endeavors!

Thanks truly,