If you’ve ever wondered how to create both meaningful impact and reliable cash flow through real estate, you’re going to love this conversation. I sat down with Terri Arcieri, a past client of mine, who has built a unique real estate model focused on clean and sober housing. Her story weaves personal transformation, nonprofit strategy, and savvy investing into a model that’s not only profitable but deeply purposeful. We dig into how she secures grant funding (including $450K last year alone), structures her for-profit and nonprofit entities, builds systems, and manages operations across multiple recovery homes. This is a must-watch for investors ready to scale with heart.
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I am here with Terri Arcieri. Thank you for joining me today, Terri.
Thank you for having me.
Terri is a past client that I’ve gotten to know well, and I’m really excited for her to share her story and experience with us. It’s a really unique story. It’s very personal. I’m excited to dig in. So let’s start, Terri, with sharing for our listeners: what does your real estate investing look like, big picture?
So big picture, I buy single family houses and they’re unique because they usually have five bedrooms, at least three bathrooms, and are close to public transportation because I service a clean and sober community. The houses I buy are that type.
You’re the first person I’ve had on who really focuses on the sober living niche, and your story is so striking. I know you have a personal connection to addiction and that you built this nonprofit and business around recovery housing. What was the moment you knew your pain story would become your purpose?
So my pain story is in my early 20s, I got on drugs and had an addiction that lasted five or six years. It was a terrible time in my life. Then I was delivered by God from drugs—I didn’t have to go through a formal recovery process, but I did experience addiction. Later, 25 years later, my little sister went through addiction and was able to move into a clean and sober house. I visited her many times and it was really cool because they gave her a foundation. She was forced to be clean and sober, they tested her, and they connected her to the community—AA, NA, that kind of thing. The whole house worked together as a team to foster recovery. I watched her blossom. She went from homelessness to getting a job, putting her life back together, reconnecting with our family. She’s thriving today. So I saw that, and as a real estate investor who owns a real estate company, I saw lots of opportunity to invest in it. Plus, I have that personal connection with recovery.
I love that. So often in this space, people chase the latest shiny object—pad splits, RV parks, multifamily, BRRRR, or sober living when it became hot due to cash flow challenges. But you chose something personal. You’ve seen the difference this kind of housing can make.
Yeah. And I really like it. We’re changing lives. We’re transforming houses, investing, creating a legacy for my children and grandchildren—and transforming lives. Every time I visit, I get, “Thank you, Terri. You don’t know what this means to me.” I get lots of hugs. It connects with me spiritually. We’re helping our community. We’re providing a real service.
How does your faith and spiritual life inform your approach to business and investing—especially in this emotionally heavy recovery housing space?
It can be heavy. There’s a lot of tragedy. People 35, 45 years old, rebuilding their lives from scratch. Families destroyed. But I meet people where they’re at. I understand recovery is a journey—you screw up, and you start again. Like a diet. You say you’re not going to eat the ice cream, then you do it anyway. This is a joy for me. I’m also an entrepreneur. I buy the real estate. I formed a nonprofit that acts as the tenant. I rent the properties to my nonprofit, which hosts the people living there.
That model is so smart. How do you balance the nonprofit and for-profit sides?
I think it’s pretty unique. In a clean and sober environment, we place two people per bedroom. That’s different than pad splits where everyone has private rooms. Each person is paid for by a program—usually a state or county program, or Department of Corrections, or someone exiting a treatment center. The programs pay for six months while residents get jobs and back on their feet. I also apply for grants. I got $450,000 in grants last year. That helped furnish homes, fill them, and pay for support.
You’re bringing the real estate—buying the homes—and the nonprofit handles operations. So tenants are funded, and you also have access to government grants. That accurate?
Yes. I buy the house and charge $1,000 over my PITI. Because my tenant is a nonprofit, I can apply to have property taxes waived—which in Washington is huge. That saves me about $1,500 per house. The nonprofit runs the operations and gets paid for providing services.
I don’t want W-2 income because it’s taxed heavily. So I wrote a memorandum of understanding for my real estate company (an S Corp) to provide operations management. The real estate company invoices the nonprofit, and the nonprofit pays it. The S Corp allows distributions, write-offs, and other tax efficiencies.
Let’s talk regulations—especially in Washington state. What does licensing look like?
You don’t need any licensing to do clean and sober housing in any state, as far as I know. People with substance use disorder are protected under fair housing laws. You can have multiple unrelated individuals living together as a family under these laws. I’ve chosen to get certifications, but it’s not required.
And Washington landlord-tenant laws?
We don’t operate under landlord-tenant relationships. This is a program, and residents pay program fees, not rent. The state is friendly to recovery homes and has laws to support us. That makes a big difference.
When you’re selecting properties, what are you looking for?
At least five bedrooms and three bathrooms. If I need more, I’ll convert garages. We try to be close to public transportation and services like groceries. Parking is important—one car per resident, and it has to work. I also try not to be too close to schools, for community compatibility.
You’ve scaled to multiple homes. How do you maintain operational standards and accountability?
Trial and error. Each house has a live-in house manager. They get a private room, usually the smallest. They’re vetted, at least 1.5 years clean and sober. I find them through referrals from treatment centers and other homes. All my homes are men-only right now. They have to enforce rules—I have 19 pages of house rules. Each house holds a weekly meeting on Sundays. One house has a mother-in-law unit where my operations manager lives. He oversees all the house managers.
What about technology?
I love Excel—I was a project manager and have a master’s in it—but I’m transitioning to monday.com thanks to your suggestion. I want a dashboard others can access. For now, it’s all spreadsheets.
What financial metrics are you tracking in this model?
If I have 10 people, 9 are paying. I charge $700 per shared bed, and $950 for private rooms. Each house brings in $6,500–$7,000 monthly. That covers the mortgage, utilities, maintenance. The nonprofit helps fund capital improvements—like a new furnace or solar panels. I also hire residents for skilled work like roofing, painting, etc. My operations manager started a construction company and hires from within the houses. It gives them ownership and income.
That’s incredible. What are the biggest challenges as you’re scaling, and how are you solving them?
That’s incredible. What are the biggest challenges as you’re scaling, and how are you solving them?
My biggest challenge is I’m flying solo. I’m kind of a one-person show. I own a real estate brokerage, and I’m the only broker. So I’m doing all that—plus buying the houses, doing the rehabs, and filling them. All the stuff. That’s an obstacle. I think having a virtual team is really going to help me with that.
As for scaling, I just love real estate. I love being creative. My first house, I pulled money out of my 401(k)—since I’m over 59 ½, I could do that without a penalty. My second house, I used private money. My third house, I did seller financing. I’m using all different kinds of strategies. When I buy listed properties, I use part of my real estate commission for down payments or closing costs. Then I get the appreciation because we fix them up, so I’m kind of doing a little bit of a BRRR strategy. I bought a house below market with seller financing, remodeled it, and I’m going to pull all my money out. So I’ll have infinite returns on that house.
That’s amazing. You’re doing a lot, and even though it’s heavy, you’re building something so meaningful.
Yeah, I think I’ve just really been blessed because the opportunities present themselves. I’d never been a grant writer, but I threw my hat in the ring and tried—and I won all the grants I applied for. I hope I keep that momentum. Then I formed a nonprofit—who knew I’d be doing that? It’s opened up so many opportunities.
I’m never going to not tell people this: if you like ChatGPT, just go ask ChatGPT what grants are available. Ask for 10 grants in your area for what you’re doing—homelessness, clean and sober support. It’ll give you opportunities, even the links to apply. I also ask it to filter out grants I’m not likely to qualify for. Then I pop those into a spreadsheet and go down the list.
I love it. That’s a huge shortcut for investors thinking of getting into this space. So for someone listening right now who wants to get into impact real estate—sober living, recovery housing—what’s the first step you’d tell them to take?
I would say, learn the business. Make sure you understand how it works, how to get people into the house, who pays for them. Then get to know the vendors in your community. You can use ChatGPT or Google, or what I did—I used the YellowPages search tool to collect a list of nonprofits in my area. Then I started reaching out to say, “Hey, I’m opening a clean and sober house. I want to serve the community.” Ask if they have a need for housing.
Start collecting 7–8 vendors willing to fund placements for residents. They’ll supply the people. Then, of course, you need the right kind of real estate—a large home with at least three bathrooms, near public transportation. Something that works for the number of people you’re housing.
Now I’m curious—what’s your vision for Olive Branch Culture in the next 5–10 years?
That’s a good question. I used to say I want 10 houses. Nice round number. Then sometimes I think maybe just five houses, but add wraparound services—find more ways to earn from each house without adding inventory. I don’t know which path I’ll take. Knowing me, I’ll probably do both: 10 houses and wraparound services.
I believe it! Now, if someone wanted to partner or work with you, are you open to that?
Yes, I think it would be helpful if private investors helped me take down the real estate. Then I could lease the property to the nonprofit and share the returns. I’d likely want to buy them out eventually—maybe a 3–5 year partnership.
What’s the best way for someone to get in touch with you if they’re interested in working together?
They can go to my website: https://olivebranchculture.org. All my contact info is there.
Awesome. Thank you so much, Terri. I love everything you shared here—your mission, your model, your heart. If you had any final thoughts you wanted to share before we wrap up?
Just that my next step is working more closely with you. I took your VA Launchpad course, which taught me how to find a virtual assistant, hire them, and keep them busy. So I’m going to move in that direction and hope to connect more with you through that service.
Thank you. I always love helping real estate investors build businesses that are not only profitable but purposeful. That’s what it’s all about—making the world better, one system at a time.