Buying property is perhaps the most significant investment an individual will ever make in his or her life. The age-old mantra has been ‘location, location, location’, and most homeowners will extensively research the area, schools, crime statistics and other relevant data before making such an important purchase. As such, it is no surprise that when residential substance abuse treatment centers are applied for within the neighborhood of a home, residents are almost universally upset and respond with a resounding ‘not in my backyard’ (NIMBY).

Addiction rehabilitation facilities are a growing industry, providing a vital service to those with drug and alcohol addictions. Many of these individuals have limited employment prospects, and many have criminal records as well. This leads to a fear of them being a safety risk to the community in general, as well as a concern that they may negatively impact nearby home values. This is a real concern that has been documented in a recent study involving MLS data. Read more https://www.naples-group.com/we-buy-houses-granby-ma/

The study found that homes located within an eighth of a mile from a treatment center had an average home value reduction of 8 percent when compared to similar homes further away. This was particularly true with homes that treat opiate addictions, such as heroin or morphine.

One reason that these types of rehabilitation properties are often not attractive to conventional buyers is because they are not eligible for traditional mortgage financing. Most rehab loans are provided by private money lenders, and the industry term is known as ‘hard money’. These types of loans are usually based on the after repaired value of the property and have much higher interest rates than the conventional loan.

Investing in rehab properties can be an extremely profitable venture, and there are a number of different strategies that can be employed to maximize profitability. For example, some investors choose to buy rehab property and rent it out. This strategy can provide passive income and reduce the amount of cash needed for capital improvements, as well as free up more time for other activities. However, this type of investment is not for everyone and it is important to consider the current local market conditions before proceeding with a rehab property investment. It is also recommended that prospective investors consult with experienced professionals before investing in rehab property. The right advice can help ensure that the most lucrative opportunities are not missed.