Group Home in Centennial, CO

[Kayla Givens]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $780,000

Our second investment property purchased with a partner. This is the third Elevate Recovery Homes house and the second that we have ownership in. This 9 bed / 5 bath MONSTER currently houses around 10 men that are in recovery from substance use disorder.

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

We found this property during a "lull" in the market. It was previously used as a group home and was perfect for our strategy. We wanted to continue to grow Elevate Recovery Homes and were fortunate to have a partner that provided the funding.

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

This property was on the MLS. It did not have any offers but we ended up offering $20k over asking. The seller paid for repairs to the foundation and the transaction closed seamlessly.

How did you finance this deal?

Our partner brought the down payment and got the loan.

How did you add value to the deal?

I was the agent on the transaction and my fiancè runs Elevate out of the home. We have an agreement for profit sharing with our business partner.

What was the outcome?

This property does VERY well - after everything, we cash flow around $5-6k per month.

Lessons learned? Challenges?

This was the first time doing an escrow holdback for repairs to be completed after closing. The seller cut a check to the title company to hold onto funds once the foundation repair was completed.

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

I was the agent on the transaction and would 100% recommend working with me! :)