How to Invest in Sober Living Group Homes and Earn $8K–$10K a Month While Helping Others

Why Sober Living Investing Matters

Affordable housing is a national crisis, and solutions often come from creative, mission-driven investors. In this episode of the Affordable Housing & Real Estate Investing Podcast, host Kent Fai He sits down with Patrick Legenzoff, better known as The Sober Investor, to explore one of the fastest-growing niches in affordable housing: sober living group homes.

Patrick’s story is deeply personal. From overcoming addiction and homelessness to building a portfolio of sober living homes in Phoenix, he proves that investors can earn strong cash flow while making a real impact. His strategy provides safe housing for people in recovery and creates reliable, scalable income streams for landlords and investors.

If you’ve ever wondered, “Can you really make money with sober living group homes while helping people rebuild their lives?”—this conversation is your blueprint.

What is a Sober Living Home and How Does It Work?

A sober living home is a shared housing model designed to support people in recovery from addiction. Unlike traditional rentals, these homes operate with structured rules, house managers, and built-in accountability systems.

• A typical home has 8–10 beds.
  
  

• Residents pay weekly or monthly fees, often between $175–$195 per bed.
  
  

• At full capacity, one house can generate $7,800+ per month in gross income.
  
  

Patrick started with one home in 2020 and quickly scaled to ten within eight months. His system centers on putting people first, while also creating a sustainable business that investors can replicate.

How Do You Choose the Right Location for a Sober Living Home?

When evaluating properties, Patrick looks far beyond square footage. His market analysis prioritizes:

• Proximity to jobs: Many residents need felony-friendly work, such as food service, warehouses, construction, or landscaping.
  
  

• Access to public transportation: Homes should be within a mile of bus or train routes.
  
  

• Nearby services: Detox centers, AA/NA meetings, grocery stores, and hospitals create a supportive environment.
  
  

• Five-bedroom layouts: Allows one dedicated room for a live-in house manager and maximizes bed count.
  
  

Patrick stresses that success isn’t just about buying cheap houses. It’s about providing dignity, safety, and access to the resources people need to succeed in sobriety.

How Much Can You Earn From Sober Living Investments?

Patrick’s numbers show why sober living has become so attractive for mission-driven investors:

• Gross potential: $7,800–$10,000 per month per house.
  
  

• Net margins: Around 28% after expenses, higher than traditional single-family rentals.
  
  

• Scale opportunity: Patrick manages close to 200 beds, and even shares stories of colleagues who exited portfolios for tens of millions by packaging both the real estate and the operating business.
  
  

As Patrick puts it, “If doctors and lawyers get excited about a 5–10% return, imagine what happens when you show them a business netting 28% on top of the real estate itself.”

What Systems Keep Sober Living Homes Safe and Sustainable?

The stigma around sober living is often tied to fears of drugs, fights, or property damage. Patrick has built systems that protect residents and landlords:

• House Managers: Live onsite rent-free in exchange for managing chores, collecting rents, and drug testing residents.
  
  

• Strict Rules: 54-page contracts set expectations around sobriety, chores, and community behavior.
  
  

• Safety Protocols: All managers are CPR- and Narcan-certified to respond to overdoses.
  
  

• Regular Oversight: Patrick’s area manager visits homes weekly, handles repairs, and ensures standards remain high.
  
  

By creating accountability and dignity, Patrick has overcome the stigma that often keeps landlords from embracing affordable housing solutions.

Key Insights from Patrick Legenzoff

• People first, profits follow: “As long as you put people first, the money will come.”
  
  
  

• Sober living is an entry point: Lower barriers than behavioral health facilities, easier licensing, and faster scalability.
  
  

• Networking creates opportunities: Patrick met mentors and investors while bartending at events, showing the power of always sharing your mission.
  
  

• Track your impact: Recording demographics and outcomes helps secure grants and builds credibility with partners.
  
  

• Affordable housing is broad: Veterans, the elderly, people with disabilities, and recovering addicts all need housing solutions—choose a niche you care about.
  
  

Best Quotes from Patrick Legenzoff

“Nothing bad has ever come from starting a conversation.”

“I wanted to give people a product I’d be proud to live in myself.”

“Don’t be a slumlord. Put people first and everything else will follow.”

“If there’s a nonprofit for it, there’s probably a housing need for it.”

Common Questions About Sober Living Investing

Q: Do you need special licenses to run a sober living home?
A: Basic sober living homes typically don’t require intensive licensing, though rules vary by state. Behavioral health facilities do require more regulation and medical staff.

Q: How do you convince landlords to rent to you?
A: Emphasize consistent rent, pristine maintenance, and oversight. Patrick often pays a premium ($100–$500 extra) to secure leases.

Q: What happens if residents relapse?
A: House managers drug test regularly. If someone relapses, they are offered detox resources and, in some cases, relocation. Physical violence or drug use onsite leads to removal.

Q: Is sober living profitable compared to traditional rentals?
A: Yes. With $7,800–$10,000 in gross monthly income, net profits far exceed traditional rentals while serving a critical community need.

Why This Episode Matters for Affordable Housing

Affordable housing is more than Section 8 vouchers or new construction. It’s about solving real problems for underserved populations. Sober living homes fill a critical gap, providing stability for people in recovery while giving landlords reliable returns.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments. By bringing voices like Patrick’s to the table, Kent shows that investors can align profit with purpose.

DM me @kentfaiheon IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.