Sober Home • Licensed Residential Recovery

Sober Home Analyzer

Enter your beds, rates, staffing, and expenses. The analyzer tells you if the numbers work before you sign a lease or buy a property.

Acquisition & Financing

Purchase price, loan terms, and housing payment

Purchase Price ($)

Down Payment (%)

Down Payment ($)

Purchase Closing Costs ($) Using estimate

Using estimate (2.5% of purchase price). Starter estimate only. Actual closing costs vary by lender, location, and deal structure.

Closing Cost Treatment

Paid in Cash — adds closing costs to cash required at closing, not to the loan.
Rolled into Loan — adds closing costs to the loan balance; increases mortgage payment and PITI.

Loan Amount (auto-calculated)

Annual Interest Rate (%)

Loan Term (years)

Monthly Property Taxes ($) Using estimate

Starter estimate only. Taxes vary by town and assessment. If you know the real annual tax bill, replace this number.

Monthly Insurance ($) Using estimate

Starter estimate only. Insurance depends on property type, age, condition, location, and coverage. Replace with a quote if available.

Monthly Mortgage Payment

Monthly Housing Payment (PITI)

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Mortgage + Taxes + Insurance

Startup / Launch Costs

One-time startup costs and amortization schedule

Furniture & Setup ($)

Repairs & Renovations ($)

Other Startup Costs ($)

Amortization Period (months)

Startup Cost Treatment

Cash to Launch — startup costs paid upfront; included in total cash required, not spread monthly.
Add to Monthly Economic Burden — startup costs excluded from upfront cash; spread monthly via amortization.

Total One-Time Investment

Monthly Amortization (Startup Costs)

Total Cash to Launch

—

Down Payment + Closing Costs + One-Time Costs

Bed Configuration / Revenue

Bed count, bed mix pricing, and occupancy rate

Revenue

Total Property Beds

Bed Mix / Revenue Groups

Bed Type # Beds Fee / Bed Revenue

Total Monthly Revenue (Gross)

Occupancy (%)

Effective Revenue (after vacancy)

Operating Expenses / Staffing

Monthly operating costs and house management

Operating Expenses / Month

Utilities ($)

Repairs / Maintenance ($)

Marketing ($)

Miscellaneous ($)

House Manager?

Manager Monthly Salary ($)

Total Operating Expenses

Utilities + Repairs + Marketing + Misc + Manager

Total Monthly Economic Burden

PITI —

Operating Expenses —

Startup Amortization —

Total —

Results & Underwriting

Key performance metrics, verdict, and financial statement

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Cash Flow Snapshot

Core monthly and annual cash flow outputs.

Monthly NOI

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Monthly PITI

—

Monthly Cash Flow

—

Annual NOI

—

Annual Cash Flow

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Underwriting Metrics

Key performance metrics for this strategy.

Coverage Ratio

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NOI ÷ PITI (incl. taxes & ins.)

Cash-on-Cash Return

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Break-Even Beds

—

Break-Even Occupancy

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Monthly Burn

—

Total Cash to Launch

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Risk & Verdict

Decision summary and major deal risks.

Financial Statement

Revenue
Gross Revenue	—
Less: Vacancy / Collection Loss	—
Effective Revenue	—

Expenses — Housing (PITI)
Monthly Mortgage	—
Property Taxes	—
Insurance	—
PITI Subtotal	—

Startup Cost Allocation (memo — not deducted from cash flow)
Furniture & Setup	—
Repairs & Renovations	—
Other Startup Costs	—
Amortization Subtotal	—

Expenses — Operating
Utilities	—
Repairs / Maintenance	—
Marketing	—
Miscellaneous	—
House Manager	—
Operating Subtotal	—

Total Operating Expenses (PITI + OpEx)	—

Net Cash Flow	—
Adj. Cash Flow (After Startup Amor.)	—

📚 Terms & Definitions — Sober Home

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Breakeven Occupancy

The minimum occupancy rate needed to cover all expenses. If your breakeven is 75%, you need at least 75% of beds filled just to break even. Below that you lose money every month.

NOI — Net Operating Income

Effective revenue minus all operating expenses before debt service. For sober homes this includes staffing, food, utilities, compliance, and management — not just housing costs.

Cash Flow

Money left after all expenses including debt service. Sober homes should target $500+ monthly cash flow minimum to justify the operational complexity and regulatory risk.

DSCR — Debt Service Coverage Ratio

NOI divided by monthly debt service. A DSCR of 1.25+ means the home generates 25% more than needed to cover the mortgage. Critical if you borrowed to acquire the property.

Cash-on-Cash Return

Annual cash flow divided by total cash invested including startup costs — furnishing, licensing, deposits, rehab. Measures how hard your startup capital is working.

Payback Period

How long it takes to recover your total startup investment from cash flow. A 2-year payback on a sober home is strong. Over 4 years means the startup costs are too high relative to cash flow.

Payer Mix

The breakdown of how residents pay — self-pay, insurance, government vouchers, scholarships. A heavy voucher mix can mean slower payments and more paperwork. Self-pay is simplest but harder to fill.

Revenue Buffer

A percentage deducted from occupied revenue to account for late payments, no-shows, and turnover gaps. Budget 3-5% minimum — sober home residents have higher turnover than standard rentals.

Payroll Burden

The additional cost of employment beyond base wages — payroll taxes, workers comp, benefits. Typically adds 10-20% on top of gross wages. Always include this or your staffing costs will be understated.

Referral Pipeline

Your network of sources that send residents to your home — treatment centers, hospitals, probation officers, social workers, courts. Without a strong pipeline, beds stay empty and the business fails.