A financially independent social worker says his sober-living rentals return up to 75% on his cash. Here's how the niche strategy works.
Scott Steenbergh, who has worked in addiction treatment since 2012, says his sober-living properties generate higher returns but requires more work.
Scott and Rebecca Steenbergh achieved financial independence through their real-estate investments. Scott, a social worker, turned sober-living rentals into a high-cash-flow niche, with properties producing cash-on-cash returns of 50% to 75%. As social workers, the Steenberghs struggled to balance work and family time. Real estate investing seemed like a way to gain more freedom.
They began investing after attending a real estate investing course called Zero to Freedom in 2020. The couple started with a short-term rental in Michigan, which they quickly booked for an entire year. They then diversified into sober-living rentals, buying a single-family home and converting it into a recovery residence. Their six sober-living properties now operate at 95% to 100% capacity, generating high returns while addressing residents' needs.
While the cash-on-cash returns are higher than conventional rentals, the strategy requires more work and maintenance. The Steenberghs' real-estate portfolio covers their lifestyle, allowing them to work reduced hours and pursue other interests.
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