Residential Assisted Living.

13 Replies

@Mike Vaupel We hope to open a home licensed for 10 beds by the end of August but it will depend on how quick the state can come out for the inspection. The biggest hurdle had been getting a grasp on the rules and regulations and finding care givers to hire. Preparing to manage employees has also been a bit of a learning curve.

@Justin Owens what sort of facility, specifically, are you going to operate? Senior Living, Elderly Care, Alzheimers or Dementia? I've heard there are challenges with them all. I also read there are companies that you can outsource all personnel to. Yes, you may have less profit margin on the business side but it will still be higher than a long term rental. 

@Larry Hawkins It is a residential assisted living facility. Licensed for 10 beds. It is not a skilled medical center. Caregivers at facilities such as ours are licensed by the state but they are not nurses or doctors.

I’m looking at starting a residential assisted living facility in the future. My experience as a nurse practitioner tells me that this could be a very successful business. In my planning I have figured that labor can go no higher than 40% of revenue in order to contain costs. The average rent for residents is about $3,800 per month. With a facility that would house 10 residents 1 facility could bring in between $38,000 and $30,400 monthly before all expenses considering an 80% occupancy rate. Labor costs would run about $15,200. This would leave between $22,800 and $15,200 to cover day to day expenses. I was figuring the split might go this way 40% for labor, 40% for expenses, and 20% profit. I was wondering what anyone thinks of this breakdown. I figured the labor costs as 40% of the full occupancy amount since the facility will need to be fully staffed 24/7. Any suggestions or ideas would be appreciated. Thanks in advance!

@Justin Owens did you open up this facility? If so, can you please recap your pre-open and post open experience both with state regulations and operations after? I'd greatly appreciate that as I'm getting started in the business. Thanks. 

There are a number of business plans out there for this type of model:  https://residentialassistedliv...

We have a HUGE mansion 17,000 sq ft in our small town that could support a number of people but it is zoned single family (Soon to allow up to 4 units on it)   Oregon may be a great place for this.   A main home and then 3 of these put to the site?  boxabl   They only cost $250 a month and figure $40K-$75K for the infrastructure, SDC's and incidentals-  Great way to house hack and ad rent revenue.

https://www.boxabl.com/reserve...

I think I am going to reserve 3 or 4 of them.  They would rent out in my area for $700-$1000 a month.