Because we charge by the bed, returns are significantly higher than market rental rates, even when considering our rent covers ALL housing costs ex food.With today's opioid epidemic rampaging across the US, there is a massive need for well run transitional living facilities everywhere, but it is easy for good intentions to sour when the houses are not run properly.  

It would be wise to have at least three months of rent saved up at all times to cover the unexpected.

EBRHA has an RAP owners representation service for small mom and pop landlords that looks pretty good: https://www.ebrha.com/rap-owner-assistance

The rent doesn't cover our mortgage completely, but covers a good 2/3rds!

I will have enough reserves to cover the holding costs as well as some left over as emergency funds for the property.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Some section8 vouchers only cover 50% of the rent, while others include 100% + utilities!

So, for example if a tenant was giving you a specific type of issue that was not clearly covered in the rental agreement you simply add it with 30 days notice and then evict for breaching the agreement.

For instance, your rent may be $1000 per month and section 8 may only cover a portion of the rent, let's say $800.