Successes leasing transitional/recover housing?

Question

Hi all,Finishing a reno on my first investment property and plan to lease it as a transition/recovery house to someone I know through a non-profit. I already know lots of people wouldn't go down this path, so don't really need to hear "don't do it." I'm willing to take the risk and bet I can make money and we can provide some safe and affordable housing.

Would love to hear advice and encouragement from anyone who has done this successfully!

Thanks!Greta

Teri Feeney Styers · Answer

I'll jump in - I have assisted a buyer several times who bought houses specifically for this purpose. In his case, the ultimate tenants were felons transitioning back into society. The "program" was the tenant and they rotate the occupants in and out. Tons of good oversite and security and my buyer is very happy with the arrangement as are the occupants. My buyer gets higher rents and the occupants each pay about $600-$700 per month for a bedroom & utilities. They are grateful to have a clean space at an affordable price. Felons have difficulty passing background checks. This organization also helps them with jobs which is another big hurdle. The houses are located near public transportation too - most of the occupants don't have cars.

Greta Climer · Answer

Teri - Thank you so much. I'm sure I can learn much from some time on their website. Thank you & Best regards, Greta

Teri Feeney Styers · Answer

Rather than a conversation with my buyer, how about you look at the program he leases to? https://www.newlyfree.com/

Greta Climer · Answer

Thank you Teri!! That validates our impressions and is quite like the model we're pursuing. It feels like it can be very beneficial to everyone when well managed. If you think your buyer has any openness to chatting with someone new to providing this type of rental housing I'd love to reach out to them at your discretion. Thanks!!Greta