My First Recovery Housing Property

[Craig Herrmann]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $116,000
Cash invested: $25,000

My first rental property! This is a single-family dwelling with a long-term lease for recovery housing.

What made you interested in investing in this type of deal?

My design business vision is rooted in faith, so being of service to others is a major part of my real estate investing business plan. Providing safe and affordable housing for recovering addicts and alcoholics fills that desire to serve others.

How did you find this deal and how did you negotiate it?

Working with a coach that invests in recovering housing opened many doors. It was a team effort. The process was very similar to a whole sale.

How did you finance this deal?

It is a BRRRR. I paid cash for the property, did some minor repairs, rented it, and now refinancing to get cash back to do more.

How did you add value to the deal?

Turned a half bath into a full bath, creating a laundry room and opening up the kitchen, dining room, and living room.

What was the outcome?

This is a single-family house with 4 bedrooms and 2 baths. It sleeps 6 adults with a lease for 2 years. It has a CoC of 20% and cashflows of $500.00 a month.

Lessons learned? Challenges?

It is an out-of-state investment property, so coordinating the repairs and renovation work has been a challenge.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am in the process of refinancing with Ridge Lending Group. They have been great to work with.