All Forum Posts by: Amy Konopka

   My realtor friend answered the question for me-my agent is incorrect. It is absolutely possible to close the same day if title is on board and everything is lined up before hand.  The same way people sit together, at a table and sign the paperwork then sliddddddeee the keys across the table.  That’s why I couldn’t wrap my head around this. I bought a home in 221 for cash and the keys were handed over as soon as escrow had confirmation of funds. 

Is it possible to do final Walk through and get keys the same day? The seller has tenants and her daughter living in the home. My agent says we need to do final walk through a few days before closing.  He’s alluding that same day let’s/closing isn’t possible   

The seller was filing a restraining order on the tenants when I first walked through the house and they refused to leave. I don’t trust the whole scene. What can I do or get in place in order to protect myself and ensure I get keys same day as walk through?

she has $7650 of my EMD because I had to extend to 60 day closing. Thank you for any advice on what I can do to make this happen!

Exactly, and it was brought up to me that  that I’m being denied lending because of the class of people I wish to rent to. It wasn’t an issue until they found out via my website that I’ll rent to what is actually a protected class. Recovery residences serve people with disabilities. 

 ok good I don't want to pull out! There is still a loan contingency on it--so basicvally I can take 30 days to start working on another loan-maybe with a credit union this time. 

My RR business (SMLLC) would not be owning the property. I am.  The property is then placed in a separate MMLLC, by me the landlord -which will then be placed in a holding company for added liability protection. 

My RR Business rents the properties (from me) then furnishes it, pays the utilities and finds "roommates".  The Biz collects the individual rents and uses that to pay the rent on their one year lease to the landlord(me).   Its basically arbitrage. 

Most recovery Residence operators don't own, alot are in Recovery themnselves and are comfortable with and see the value of social model recovery. They rent from landlords who are knowledgeable about how awesome this model is. The house is mainatined and kept immaculate (as long as they rent to a responsible operator), the guests have a curfew and if they are a problem they are immediatley removed from the house. Absolutely no loud parties. I walk in that house unannounced at least two times a week--and the people there are HAPPY to see me.  

There is a live-in house manager who basically is like the Den Mother who keeps these super grateful people in line and on the right track (at least mine does) Most people only know what their moms and grandparents know about these "halfway houses".  Andf thats fine--they don't need to be in this business. Its not for everyone.  

I've been working with a lender who will not lend to me since my original intent was to create another Recovery Residence. Credit score high 700s. Other property cash flows a couple grand/month.

I told them-OK--I'll rent out to a family, totally easy to pivot. 8Br/5 bath house gated community in Murrieta, CA. 

Appraisal already done. Comps out at $4400/month rent. On affordablehousing.net for 5K

Lender makes me sign docs promising its not a recovery residence despite having contracts and guaranteed notes from the County to fill the beds and more than adequately pay them back.  Okey Dokey. 

  I think I can get the sellers to hold off 30 days while I find a more open minded lender.  

1. Is there a certain amount of time I'm granted when it comes to lending? I put my $7650 in EMD down.

2. Is there a DSCR lender out there who isn't afraid of this Housing Model? If so, i'd like to connect because I do plan on scaling.

I I would reach out to local rehabs and treatment centers. They will have more information than city councils. Most operators try to stay away as far as they can from any governing agency since theyre the ones that wish to "shut them down". I highly advise you do not rent to an operator who doesn't or doesn't plan on having a "live in house manager". 

I’ve watched a couple of their videos and they sort of turn my stomach. They seem more about cramming as many people as you can legally cram in a house instead of creating an environment conducive to recovery. Get with your local chapter of NARR (National Alliance of Recovery Residences) and the state affiliate should have information (including best practices and standards) on how to start. 

Connect with me and I'll shoot you my phone number.

There are definitely crappy sober living homes out there.  If you choose this route, first learn about the Best Practices established by NARR.   They are at the forefront for all legislation trying to finally get Best Practices established.  There's SOOOOOOOO much stigma surrounding them, and rightfully so.  I got into the business after stepping into one and seeing one that wasn't properly managed.  But if you're renting a home to someone who wants to do it, they should be locked on and at least look for the "pseudo-certifcations" offered by the States through NARR.

My sober living home is SPOTLESS. It is 1000 times cleaner than my other rental property that is currently rented by an Officer in the Marine corps (single, no family, and house hacking with a buddy against the lease) 

I walk in there any time I want, unannounced. Iy home is about an hour drive but I visit a few times a week because my House manager and I are a team  "walking the lines" since I want to be actively involved. I have 9 beds in a 5 bedroom home (i could easily fit more beds per sq ft but again I dont want to be one of "those" homes.  

  The girls have daily chores and weekly chores. But the house was also renovated and updated and opened with all new furnishings, not a mish-mosh of goodwill pieces like the other homes so this is a lot of their first chances at having a nice home. They WANT a nice house.   I also am not a "bed filler" in other words, I'm not looking for immediate cash flow-I want to set the standards that my house isn't a place for "cheap beds/rent".  I've turned away potential "guests" because they weren't serious about their recovery. Its painful if I look at the cash flow I'm losing, but I have that choice.  

Be prepared with being comfortable with threatening to be sued and booting people out that day when they pop positive. That should be filtered out thru the person renting the house from you, but it may trickle up to you.  Maintaining anonymity and involvement solves this problem, but I'm in it for different reasons  for more than real/estate and cash flow so its impossible to get out of that scenario now!!

To all the naysayers who say they're dumps, depends on you and your systems and the management of the MOST important piece of this puzzle--Your House Manager. Its not for the faint of heart, but some one has to do it. They're needed, they're here to stay and nothing makes me happier than doing good, but doing well.   My neighbors love me. They know. They're better behaved than any tenant I've had.  meth addicts, heroin users, alchoholics.  All under one roof.  Trying to do better.  Thats all it is  

 If you pay for it outright and you own it, it will have absolutely no impact on your ability to sell the property.

I would absolutely put solar on, bonus depreciation  (80% this year) and tax credits, ….oh and free electricity?! I have solar on my primary and am putting it on my rental (it’s a recovery residence so I pay all utilities) especially in Arizona!  My advice though is stick with the larger companies.  More expensive but they’ll be around when there’s a problem.  You’re out of luck when something goes bad and the company closed shop.