You Definitely Haven't Thought Of This S...

rolling As investors, many times we tend to fall into a “comfort zone” when it comes to acquiring properties.

We like to go for the same property types, and we don’t always like to branch out.

The problem with that?

Most investors fail to go after properties that can really allow them to make a substantial amount of money – just because they’re too comfortable to think outside the box.

Hey Moguls, Jason Lucchesi here with some thoughts on a unique property type that I bet you haven’t ever considered…

The property I’m talking about isn’t the “bread and butter,” cookie cutter-style house that many investors go after.

Where I am in the Midwest, especially, investors tend to go after the standard 3- to 4-bedroom homes. They fail to consider the 1- and 2-bedroom homes.

Or, if they do think about buying a 1- or 2-bedroom home, they do so with the intention of adding another bedroom – to increase the property value.

Instead, a strategy that I’ve been using often lately is this: buying the 1- or 2-bedroom homes, and making them compliant to American with Disabilities Act (ADA) standards.

Think about it...

More than 2 million Americans become wheelchair-dependent every year – whether from an accident, illness or disease.

And, many times, they have very limited options for housing that meet their needs.

This is where you comes in. By making a home ADA-compliant, you can provide a win-win situation for someone in need, while still making a profit and building your business.

Why ADA-Compliant Homes?

Now, many of you may be thinking, “Whoa, whoa, doesn’t it take A LOT of money to make ADA-compliant renovations to a home? Why would I want to spend that kind of dough?”

parents It does take time and money, yes. But hear me out...

I’ve worked on many properties for people with disabilities. In my experience, these individuals are typically financially stable – much more so than, say, Section 8 tenants.

In general, I’ve found that Section 8 tenants don’t tend to respect the property and can leave a lot of damage. Unfortunately, sometimes this causes you to lose more money than you make, in the long run.

Now, I’m not here to rip on Section 8 tenants. Every situation is unique, and every person is different. You may have amazing experiences with super-responsible Section 8 tenants. But, I also want to be real with you about what I’ve experienced, in my many years as an investor.

In my opinion, the remodeling that is needed to make a home ADA-compliant is a much better investment than renting a home to Section 8 tenants.

And... I want to share this news with other investors! I think this is an ideal opportunity for investors around the country – and it’s something that many of us never think about.

What Does it Take?

If you’re thinking about remodeling a property to make it ADA-compliant, there are several factors to consider.

When making your renovations, you’ll need to think about:

Ramps – having ADA-compliant ramps in the front and back of the home is a must
Widening all doors and doorways
Seamless floors throughout – many homes have different flooring types, sometimes at various heights, throughout the home; you want to create a home that allows someone with a wheelchair or power chair to easily glide from room to room
Check out ADA.gov for additional accessible design standards.

Also, keep in mind that you may qualify for grant money when making these renovations. In some cases, I’ve received grants to remodel my properties specifically for wheelchair-bound individuals.

So, in my opinion, the work is worth the payoff.

How Do I Start?

Finding properties that are ideal for this investing strategy is a more straightforward process than you might think.

Simple ways to find the best homes to remodel are:

Talking to real estate agents to find off-market or on-market properties
Working with joint venture partners
Browsing Craigslist
Contacting the phone numbers on bandit signs
Attending real estate investor meetings

push Basically, the same methods that you would use to find any stellar property deal are the ones you’d use for this investing strategy.

Because many investors avoid the 1- and 2-bedroom properties, this can be a perfect chance to take an “undesirable property” off someone’s hands.

You can then add value to the property by making it ADA-compliant and selling it for a sweet profit. Or, keep the property and rent it out; it will probably be very easy to find tenants, because these properties are few and far between.

In the long run, when you do decide to sell your ADA-compliant home, you can easily market it to other investors as a income-producing property (with a tenant already in place).

Give it Some Thought

Now, I know this strategy may not be ideal for everyone. But it’s a highly unique way to create your own niche in the real estate market – which can ultimately help you grow your business.

As for me, the goal of my business is to improve the quality of life for the people who live in my properties. In the course of 1 year, my objective is to either remodel or give away 12 homes to individuals who are wheelchair-dependent. It will be costly, but to me, it’s worth it.

It could be worth it for you, too.

How Can I Help?

What are your questions concerning ADA-compliant properties? Let me know in the comments section below. I’d be happy to help you figure out if this property type might be an ideal strategy for you.