Anyone have experience with housing shelters? - Posted by Mike

Posted by BR2 on June 23, 2000 at 07:43:06:

Sorry you felt my post was negative, but I thought it was informative. I like to know the pros and cons of taking on something new and I’m sure Mike does too.

The best of luck to you.

Anyone have experience with housing shelters? - Posted by Mike

Posted by Mike on June 21, 2000 at 09:17:40:


I am exploring the option of doing a land contract with a potential buyer for a rehab project that I’m finishing. I’m having a problem getting enough out of the property to go with a more conventional financing deal. Here’s the situation. My contractor is very active in the community. He routinely helps lower income people with drug and alcohol problems. When I first bought this building, he told me that he had someone who is very interested in the place and would like to buy it to register with the Dept. of Human Health Services as a shelter for people trying to recover from drugs and alcohol addictions and get started on the right track again. This woman tried getting financing, but doesn’t qualify at this time. I met with her today and think she would be a good candidate for a contract sale, with the possibility of refinancing in a year or two.

Does anyone have any experience with community shelter programs? She tells me that typically these people pay $200-$300/month for food and shelter and that generally 2 or 3 people will share one room. This property has 4 rooms that could be used for rent, so the income would be adequate to cover expenses and still provide a profit.

I am trying to do my due diligence by getting as much info. about this type of program. Also, I’m going to see another project that she is currently running at a different location, to see how she operates. Any information would be much appreciated.


Re: Anyone have experience with housing shelters? - Posted by Ben (OH)

Posted by Ben (OH) on June 22, 2000 at 05:26:24:

Forget the negative crap. Go for it. I’m opening one in August/September. These drug rehab homes are typically called 3/4 houses. There is a huge demand. Yes it is a pain in the ass, but what is easy 100% of the time. Run it with an iron fist and you’ll be fine.

Drug Rehab Housing - Posted by BR2

Posted by BR2 on June 21, 2000 at 18:09:01:


In my area these houses are known as Drug Rehab Houses. From what I hear the money is good, and yes, there are 3-4 people per room with a high turnover rate. I personally know of a home that had 12 guys at one time. Right now the city is cracking down on these types of homes due to the # of individuals living in them. The city now charges a yearly fee for these homes ($500 per yr) plus yearly inspections. Rehab homes must have a live-in manager, and individuals must attend some kind of rehab program/meetings. Also, from what I hear most have been in jail/prison at one time for some drug related issues.

Yes, the money is good, but are you ready to collect rent from 12 former drug addicts? I’ve been approached, but I’m not ready to take on this type of headache.

Good Luck