Converting home into boutique assisted-living facility

[Jon Klaus]

I'm looking into converting a fairly large SFR into a small assisted-living facility.

Of the 162 state-licensed assisted-living facilities in Dallas County, 107 are in homelike settings that care for up to 16 residents. The home I have in mind has 4-5 bedrooms and 3 full baths.

Anyone done this or have a handle on the economics? Typical challenges?

[Bill Gulley]

Hi, I really do hate raining on parades, I know it has gotten me an undiserved reputation (LOL) but I suggest you check first with the state requirements for assisted living homes before you make plans or an offer.

I'll bet ten years ago, well maybe fifteen, you could convert a mobile home to assisted living, no more! At least in Mo. we had a fire in a home that killed about 13 and things changed drastically!

It's my understanding that "assisted living" is in different categories, depending on the degree of assistance and care required. for medically assisted
persons, I know some are the waiting room to heaven and not classified as nursing homes, and then there are those for limited assistance, like someone restricted to a wheel chair and who has say mental issues who can not really be on their own.

A friend of mine owns several assisted living facilities and nursing homes. We have been this route before!

It probably would not be worth the conversion of a SFD to a facility. You will be changing use and zoning may be required as well, to start with. Every aspect of a home may need to be upgraded. Start with a fire suppression system, then move on the the HVAC for a HEPA system and individual themostates. Some patients (called "clients") need oxygen, so tear out the walls and use stainless approved plumbing and all the fittings to hook that up, you'll be a hundred grand on your way to your budget limit, but you might get luck there depending on what clients you can accept. The kitchen will need to be like a resturant, double sinks, graese traps, commercial dish washer, vented hood and yes a seperate fire suppression system for the stove area. At least you won't need a sterile environment like the nursing homes, but you need to get an inspection for lead, asbestos and all the other bad little things the health department can think of. You may also nee to have sufficient parking for vistors and a handicap entrance and fire exits, don't forget to light the way out!

I'm sure it would be cheaper to build a new facility than to rehab an existing home. FIve bedrooms, not big enough to cash flow, IMO and my friend won't consider anything in that arena to serve less than 20, I'm sure he has a reason and since he was a CPA in his previous life, I'd trust his judgement with a break even point and profit margin. .

Even if you have limited assisted clients, you'll need care takers and an RN on call 24/7. It use to be that a homeowner could take in a couple of "clients" in their home and basically babysit, but now they must be licensed, trained, bonded and investigated.

Don't forget those cash cows have to be insured too and I hear moans about professional liability coverage for the RN and limited trained sitters on staff.

It might be that your state allows a more liberal housing standard, but I doubt it. That's why I suggest you check first with the state requirements and county health codes.

Anytime you see a great need for a service, especially a medically oriented type service, that is not being met in a community and that such a service is a profitable or very profitable enterprise, that tells be one thing quickly....that government has shut the doors on entering that market or that it is very expensive to enter that market (business). There is always an obstical for new businesses to enter a profitable venture, otherwise...there would not be a shortage in that enterprise! But hope the best for you....Bill