turn-key halfway house rental purchase?

[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. 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.

Numbers:

Purchase Price: $150k

Monthly rent is $1700 per month

Owner Pays roughly $150/month in Utilities

Repairs are probably slightly less than the average SFH rental, as tenants are only there for a few months at a time, and are closely monitored. Very little furniture, pretty bare bones place on the inside.

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!!

(sorry for the double post...I fear that I posted into the wrong forum the first time)