Turn-key Halfway house rental?

[Jon Peterson]

Hey all-

I am looking at purchasing a SFH as a rental property. The current owner leases the property to a corrections company that works with early-release criminals and helps integrates them back into society. It is basically a halfway house. Monthly rent is roughly 1.2%, and all tenant management is handled via the corrections company. Management company also pays the rent each month. Looks like there would be some decent cash flow, and at a relatively passive basis. The house is also in an up-and-coming neighborhood, and is likely priced too low simply because of the nature of the house and due to the fact that its not in great shape cosmetically.

Does anyone have any experience with a deal like this? Any thoughts/suggestions/questions? Seems like an intriguing idea to me...any help is greatly appreciated!!