top of page

How to Buy Investment Property for Sober Living

Every day, people are released from prisons and rehab facilities and need ample environments to recover and learn essential skills to help them better integrate into society. If you plan to give back to your society and make some money in the real estate industry, you need to consider buying property for sober living. This is because there has been a boom in this industry influenced by the desire of people in recovery to seek appropriate living conditions to support their recovery process. If you decide to venture into this market, you'll be doing society a good service by providing a resourceful home for the most in need. As you make the decision to invest in sober living homes, you should consider the following factors.

The Right Location

This is an important step in any real estate investmentthorough research in identifying a safe space for the acquisition is crucial. You can also find out from the experts to help you in identifying a suitable place to establish your halfway house. A good halfway house should be accessible to residents and be closer to social amenities to make things easier for residents.

The home should be closer to the hospital to access medical services without traveling long distances. You also need to ensure the house is closer to the road so that residents without private cars can easily find a public means of transport to their destinations. Adequate parking for those who own cars or are frequently visited by family members owning cars is necessary.

Security is another important thing while looking to acquire property for sober living. Search and analyze crucial information like the crime rates in your possible location to ensure that residents are not attacked and robbed of their properties. Failure to do the proper research may lead to massive withdrawals from your property.

Regulatory Environment

Zoning laws also play a significant role in choosing the best location since various states are strict on investment in specific areas, mainly residential areas. You need to know whether the sober living homes are permitted in the residential or commercial site that you have identified. In many cases, you'll have to acquire the appropriate licensing recognized by the Department of Mental Health and Addiction Services (DMHAS) to operate such a facility.

Study the community's reception to sober homes to determine whether the environment can be conducive for sober home investment. Most people perceive the homes as a “backyard” movement. This makes most homeowners block such house investments in their area. Therefore, forming a mutual relationship with the community members and educating them on the importance of the homes will ensure that peace and understanding are mutual. Handling people who are battling addiction can be tricky, but with patience, they can be able to avoid relapse and integrate easily with their new environment.

It is always advisable to find places where sober homes are already operating to provide a friendly environment for new investors. You can reach out to the existing sober home operators to gather all the information for starting a new investment in the area. You will know about the local governments' guidelines and rules, including the number of residents you can accommodate.


The home you are buying should fit the number of people you want to accommodate. This would mean considering the number of bedrooms and bathrooms available for your residents. A good sober home should have at least three bedrooms and accommodate a maximum of six people. When considering this option, you need to have a good purchase plan.

You can consider acquiring conventional loans since they have lower interest rates and work well for single-family homes with at least three bedrooms. It is also essential to consider the regulations put in place by the homeowners' association to govern the neighborhood.

The rules may include the number of residents and cars allowed in a home. Even though federal laws in the United States protect sober homes, that does not mean that homeowners associations are powerless. It is good to approach or notify the association about your project to avoid unnecessary legal battles and excessive opposition undermining the whole project.


Understand the financial obligations of the sober living home you are planning to buy. Planning your finances will help you during the house purchasing and maintenance process. Most investors prefer homes in good condition as they prefer to begin collecting rent right away. Buying a house that needs renovations may be expensive as you may find hidden damages that may require a lot of money to repair. The repairs aren't stable, putting your finances at risk of going bankrupt even before launching the facility.

Maintenance cost is a factor to consider at this point. Even though it should be lower to enhance maximum profit, you need to be ready for some spending especially if occasional maintenance is required such as in the case of a toilet blockage, roof leaks, or floor cracks.

If you want to establish a not-for-profit sober living facility, then government grants can help you afford it. But first, you have to be recognized by the IRS as a 501 status. To find grant opportunities, refer to sites such as or the Catalog of Domestic Federal Assistance.

Insurance Coverage

Dealing with people battling substance use disorder can sometimes be challenging. And because you are not sure of the damage that is likely to be caused, you need to purchase special insurance that will cover your sober living home and its people. You will also need to add extra liability coverage to protect your personal assets.

The insurance company will need your home license or operation certificate, personal details, social security number, property location, and financial history before insuring your home. You will also need to determine whether the insurance company is licensed to operate in your state and whether it is financially stable to protect your property. It's vital to buy insurance cover from a company operating in your state so that when you have a problem, you can easily visit them for help.

Your Staff

You need to ensure that you have qualified staff to offer the best services to residents of your home. Remember, the success of your business depends on your customer service. The better the customers are served well, the more they are willing to stay on your premises. In addition, it will also promote your business to people who are not living on your premises.

The employees will also create proper guidelines on the expected conduct from the residents to enhance efficiency and prevent misuse or destruction of property in the facility. This will ensure that all operations run smoothly in the facility, providing comfort and relaxation to the tenants. You can obtain a writing template from the U.S. Department of Health and Human Services and write your operations and policy manual for both employees and residents to ensure efficiency and consistent results. Ensure that the manual is free from error and informs everyone on what they need to do.

Consult with Us Today

Are you looking forward to establishing a halfway house to promote sober living in the community but don't know where to start? Well, start by consulting the experts today to ensure your investment works for you, too, as you help others through their recovery journey.

1,004 views0 comments

Recent Posts

See All


bottom of page