All Forum Posts by: Matt Thompson

Depending on the sq. footage/# of rooms your best bet may be a Ductless Split System.

It will not only be cheaper then replacing the existing heating system, you don't have to worry about the fire hazard mumbo jumbo. Easy to install, maintain, and come with warranties if it were to break down in the future. 

Let me know if you need any help finding the best one for your tenants and budget

Matt

Thanks for the response Jason,

To answer your questions... The main difference is that the $950 isn't for just your rent, rather its a monthly payment towards the overall goal of keeping a tenant sober by giving them a safe sober environment. Opposed to conventional tenants and charging say 600 a room for 4 rooms. The catch is that paying $1000 to stay sober is a fairly cheap alternative to highly expensive rehab programs or other forms of treatment. 

In most cases like his the sober living programs require the tenant to have a sponsor, attend meetings everyday, complete monthly drug tests. Writing up a detailed contract would clearly state all this information for a potential tenant. He obtains the majority of his tenants through sober meetings such as alcohol anonymous as well as craigslist ads. 

Matt

Hey everyone,

I am currently involved with a flip in the Beverly Hills area and everything is going great, but I am looking to build my own team for a new real estate venture. As competitive as the Los Angeles market is, I am constantly looking for innovative ideas to generate income through Real Estate and it wasn't till about a month ago where I was actually sold on one of my own ideas. Okay it wasn't my own idea, but it fell into my lap. 

Sober Living Homes. 

My brother told me about a close friend of his that owns multiple of these types of properties and is making an insane amount of cash flow. Simply put, he bought his first house (4br) on a Conventional loan. Mortgage payments were around $3000, and was charging $950 per tenant(2 tenants per room..$5700), and the fourth room was for the house manager(free rent). After initial expenses (rehab costs, furnishing exp., etc.) and monthly expenses(cable,internet, utilities..) he generates an average cash flow of $1000 while building equity on the property. He currently owns four and self-manages these all while working a full-time job. Anybody else want to be this guy?

Now I understand the various costs not mentioned, as well as the amount of work it would take to get a project like this started. But please tell me if I'm wrong if I'm thinking this is a great way to generate both short and long term profit. And for those wondering, I have a variety of connections within the sober living community, prospective house manager, and general contractors.

Open to any and all thoughts  

Thanks,

Matt