Most rentals cap your growth. You deal with tenants, repairs, and turnover while earning 3–5% returns.
Group homes change that.
• You lease to operators who run licensed and non-licensed housing programs
• They handle management and maintenance, pay above-market rent, and often receive 20–100% of their funding from Medicaid or state grants set aside for housing the specific demographic
• There are many grant programs out there where funds go unused and revert back to the government; therefore, new operators should do the research behind their cause to see if there is a grant for their desired use.
This model delivers consistent income and lower workload. Typical group homes produce 8–13% cap rates, 10–15% cash-on-cash returns, and 18–20% IRR potential. Licensed homes take 6–12 months to approve and require higher retrofit budgets but unlock specific state grants and Medicaid funding. Non-licensed homes start faster with lighter capex and similar cashflows to the landlord.
You keep ownership, equity, and control. Operators run the business. Rent arrives on time, backed by real programs that serve real people.
I’m Jon Wells, founder of A Better Way Investments.
After flipping 30+ homes and managing rentals across Denver, I saw how unstable traditional real estate had become. When I partnered with licensed mental health operators to build group homes, everything changed. I learned that state-funded housing could deliver higher returns, stable leases, and measurable social impact.
Now I help investors and landlords do the same. If you want predictable income that helps real people rebuild their lives, start here.
If you’ve got capital to deploy, or just questions about what’s next,
I’m open to a conversation.
I’m not a financial advisor, attorney or CPA. I’m an operator-turned-educator
who believes good deals start with aligned people. If that’s you, fill out
the form and you’ll hear from me directly.