Can you add some detail? This is a little vague.
@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.
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, are you sharing the beds?
@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.
post shows a year old, but those rent number seems pretty high - comparable to nice ALFs in Orange County here in California.
Is anyone in this thread up and running? If so I would like to discuss.
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.
I think I am going to reserve 3 or 4 of them. They would rent out in my area for $700-$1000 a month.