Social worker scales recovery housing to 75% cash-on-cash returns

The transition began in 2020 after the Steenberghs found early success with a short-term rental in Caseville. Recognizing the potential of real estate to subsidize his career, Steenbergh applied his background in addiction treatment to launch a recovery housing business in 2022. The model relies on high-density occupancy, with the couple currently managing 64 beds across six properties that maintain near-total capacity. Revenue streams are diverse, fueled by a mix of individual daily payments, government contracts, and grant-funded assistance programs that support residents during their transition from inpatient care.

While the financial yields significantly outperform conventional single-family rentals, the operational demands are intensive. Steenbergh notes that high turnover leads to accelerated property wear and requires a more robust infrastructure for appliances and maintenance. Beyond physical upkeep, the business requires a nuanced approach to crisis management, as landlords must be prepared to handle relapses or behavioral challenges. Steenbergh emphasizes that the strategy is not a passive investment and warns against entering the market without a deep understanding of addiction recovery systems.

For the Steenberghs, the portfolio has achieved its primary goal: autonomy. With Rebecca managing the real estate business full-time and Scott operating a private outpatient clinic on his own terms, the couple has moved into a state of semi-retirement. They advise aspiring investors to focus on education and creative financing, urging a shift in mindset from questioning feasibility to identifying the specific mechanisms required to execute a deal.