Boarding House or 3/4 House

Rehabbing, Fix and Flip, Rental Properties
1

I am located in Pittsburgh, Pa

I know of two different guys who have rehabbed properties and rent them as 3/4 houses, transitional living, boarding houses. Heres what they have done:

First these buildings arein a marginal neighborhood inexspensive and rehabbed quickly. They then furish the place in modern free from Craigslist and such buying as little as possible.

Second they put recovering addicts into the building with one as a house manager whose responsiblity it is run the house keep it clean by putting up chore lists etc. Everyone is subject to random drugs screens and upon failure leaves the house quickly. Many are on probation or just out of jail or just trying to come back from their bottom. Who doesn’t have a tenant on probation?

Third and best they get $390 per month or more per guy two to a room. So one house filled up instantly like 7 guys the other is on the way with 3 going to hold 5, the one guy just closed on a building to do the same for woman.

$25,000 property

So the place is bringing in $740 and will be bringing in $1480 soon. The other place is bringing in over $2000 per month and the house manager does it all for free rent.

Once the places open the need for this type of housing we see is incredible and with the numbers and the house manager who cares about the turnover.

evan at 1/2 capacity it is win.

2

what type of regulations or licensing is needed ??

who pays the $390 per person ?? also you mentioned random drug testing , who does it get reported back to ? the person probation officer.

also i have to believe neighbors dont want a rehab center next door to them so that would be another problem.

Im interested in this it sounds profitable.

3

I will ask Jeff but I think that since it is not a liscensed facility with the city or state your are simply running a boarding house that provides a sober living enviroment. As such the drug screens are for in hose use but culd be reported to P.O. for a drug screen if needed. The tests run $4 in bulk and can be used as need.

As for running a rehab it is really just a rental and your renting to those who are trying to recover. Neighbors will see a turnover but normaly curfews are midnight and the guys are decent guys trying to turn a corner. The neighbors are used to worse tenants so as they get to know them they will be helping out, a few of the guys I know help out around he corner at the food bank etc.

You’ll even run into mom and dad trying to get Jr. fresh out of rehab intoa place that will get him on his feet and keep him on a short leash. After all any problems the drug screen dip stick will tell you.

4

so who pays their rent ?? the tenants it sounds like.

I think in my area you have to have a license to run a Rehab house.

I think you got some information not right. as i can not see how its constitutional to make people who pay rent take a drug test. If their not forced to take a drug test than whats the point ??

still sounds like a good idea though

5

This is a rooming house situation which is illegal unless it is properly licensed.

6

Gack! My tenants are difficult enough. I don’t want to have to deal with a house full of drug addicts, sex offenders, and felons.

A halfway house must be licensed in my state and there must be a qualified counselor, and they don’t work for free.

If you have the stomach for it, you are welcome to it.

7

Isn’t a Rooming House or Boarding House by definition required to serve a meal? Or does this depend on local custom or regulation?

I think it’s a terrific idea with high demand for those tough as nails landlords who are already dealing with difficult tenants.

  1. Tenant spends money on drugs, not rent so you evict him
  2. Tenant can now enter your SRO and become drug-free
  3. He gets a job, can now pay rent
  4. He relapses, goes back to SRO

Does the state or welfare pay for the SRO or rooming house? Seriously, this is a good idea and could make someone a lot of money while providing a good service. Homelessness creates crime. A roof and a room is a basic necessity and good for society.

Furnishedowner

8

The health departments around me use an informal set of criteria to separate a rooming house from a rentall. Some of the key elements are individual rental agreements for each occupant, shared bathroom, bedroom doors with locks, and collecting rent from each person. I have seen LLs get in trouble just for renting by the room.