Transitional living homes provide short term housing to homeless individuals who are on a low income housing program.  These housing programs are provided by multiple state and local agencies to assist individuals with low incomes. This program is targeted to people with sufficient income, but no money saved for security deposits or fees. Trans Homes residents are selected from individuals who are in situations of homelessness due to extreme financial hardships, abuse and addiction. This type of housing is also frequently used program for those re-entering society from a corrections facility, and those needing rehabilitative services. Residents usually stay in the Trans Home from 6 to 18 months.Transitional homes are not a permanent housing solution for the homeless; halfway houses provide long term housing solutions to the homeless and are a totally different investment.

How does it work as an investment? 

There are two ways you can go about investing in Transitional Living Homes. You can either run the entire operation yourself (including forming a non-profit corporation, working directly with the state and federal agencies, finding, screening and managing clients), or you can outsource the entire operation and focus on just owning and managing the property.The Community Services Provider will find, screen, place and manage the TransHome residents. They collect the rent and then pay you. In each home there is one resident chose to be the on-site manager, giving the Community Services Provide eyes and ears in each home. Unless you are dead set on running a group home, it is better to partner with aCommunity Services Provider who already runs Trans Homes, and are looking for houses for their clients. This gives you the opportunity to make this a truly turn-key investment.  The homes tend to be well maintained. Residents who do not abide by the rules of the home can, and will be, kicked out of the home and risk losing their government subsidy. Along with on-site management, this provides significant incentive for the residents to take care of the property.

Why turn key investments? 

Turn-key investments are the only way to truly passive income. Passive income allows you to fund your live style and allow you to pay for the things you want now and allow you to put money away for things you will want in the future. A turn-key investment minimizes your time and efforts needed to generate an income. What kind of government regulations apply to my investment home?Unlike Adult Foster Care Homes, there are no government regulations on the home owner, other than providing a clean safe home with a city certification.  

Current Detroit's Real Estate Market and Transitional Housing

We at thepowertobefree.com recognize the huge demand for such type of investment especially for out of state investors as well as for the local beginners. We setup the systems that allow anyone with either good credit, and/or IRA funds to purchase properties that are completely remodeled and packaged with tenants as well as tenants' management and property management in place.

To find out more, visit us at http://www.thepowertobefree.com/2008/02/michigan_commercial_real_estate_transitional-living-homes-as-a-real-estate-investment/