Rental Property Investor · Stockton, CA · Member since 2019 · 5 posts · 2 votes
Hello Fellow investors,
I am wondering if their is turn key equivalent for passive investment in assissted living facility. I know their are single family homes can be converted to small adult care homes for adults needs minimal assistance and food preparation. As baby boomers are retiring and I see greater need of these facilities. When managed properly with help of administrator ( 80 hr class ) and assistants these can generate lucrative cash flow. Each bed can be rented for( cash 3000k to 5000k/month based on market )I would appreciate any info from bigger pockets community.
Yes there are syndicated deals for AL with Memory Care (usually added on) but majority are 506C and require you to be accredited. There are group homes on a smaller scale (Mom/Pop) usually done by an RN with family/friends.
The concept / sell sounds very strong till you get into the DD and find saturation, demographics,.... ultimately you are investing more into the operator period.
I am currently in several and the industry is undergoing lots of issues as market sales prices have changed considerably over the last 2 years and metrics have changed from NOI cap rate to a per-unit caps.
@Maninder Sanghera I own and operate 5 assisted living homes and 2 memory care homes. I'm currently working with a local municipality to build multiple care homes on a six acre plot of land. I'm considering a syndication to continue to expand.
@Maninder Sanghera the best way to build deal flow as a passive syndication investor is to get out there and find the syndicators! Go to conferences, join groups online and offline. Get to know the syndicators and pick the ones you like. Get as much deal flow as you can, so you can get experience evaluating the investments. It's a good idea to look at as many as possible before investing. Are you accredited?
@Jeremiah Mon. I have not used synidcation yet but it's the way I will continue to expand my portfolio and I will probably syndicate the homes for the 6 acre project.
My homes range from 10-16 residents per home. Our residents much prefer homes like this compared to large facilities.