Adult family home advice

Member since 2022 · 3 posts · 1 vote

Hello everyone :-)

I’m on my journey to open my first AFH in Vancouver WA. One of the main things that concerns me is finding a house to convert to an AFH. I have a couple of questions regarding this topic.

Is it best to buy a house and convert it to an AFH, or rent a regular house and convert it?

Does it have to be a 1-story house or is a 2-story acceptable?

Given the high housing market in the PNW it makes me worried to buy a house just to start an AFH. Any advice would be greatly appreciated.

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Michele FischerPro Member

Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes

Hi, Hannad!

I live in Seattle now, but all of our rentals are in Longview, WA, so we are kinda neighbors.

I have seen adult family homes where the downstairs are where the residents live and upstairs are office and employee living quarters. Something to think about. You may also want to consider ability to restrict access to the kitchen if you are going to have any memory care type residents.

I would think you would want to puchase rather than rent a home to convert. If you purchase you have a lot more control over what modifications can be made, and most landlords will not want a revolving door of residents.

Rentals are very dependant on the quality of property management if you aren't self managing, and I assume AFH's would be even more so.

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Hannad Qaisi:

Welcome to the BiggerPockets forums!
I'm going to guess you saw a video that said you could make 10x more by running an adult family home. Maybe so. But if it were that easy, wouldn't everyone else already be doing it?
Your question about single-level vs. two-story tells me you need to do a little more reading up on this. There are books and blogs dedicated to this topic, so I suggest you read/watch a little more before jumping in.
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Hannad Qaisi
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Member since 2022 · 3 posts · 1 vote
3y
Quote from @Nathan Gesner:

Quote from @Hannad Qaisi:

Welcome to the BiggerPockets forums!
I'm going to guess you saw a video that said you could make 10x more by running an adult family home. Maybe so. But if it were that easy, wouldn't everyone else already be doing it?
Your question about single-level vs. two-story tells me you need to do a little more reading up on this. There are books and blogs dedicated to this topic, so I suggest you read/watch a little more before jumping in.
Hi @Nathan Gesner

Nope, those videos weren’t the reason I jumped onto this train. I do acknowledge that 1 story houses are best since some of the residents might have issues going up the stairs but I was asking to see if 2-story houses are possible - not many 1 story houses available in Vancouver WA.

Anyways, this was my first post on BiggerPockets and I wish I got a better response that wasn’t discouraging. Thank you for your time.

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Michele FischerPro Member
Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
3y
Hi, Hannad!
I live in Seattle now, but all of our rentals are in Longview, WA, so we are kinda neighbors.
I have seen adult family homes where the downstairs are where the residents live and upstairs are office and employee living quarters. Something to think about. You may also want to consider ability to restrict access to the kitchen if you are going to have any memory care type residents.
I would think you would want to puchase rather than rent a home to convert. If you purchase you have a lot more control over what modifications can be made, and most landlords will not want a revolving door of residents.
Rentals are very dependant on the quality of property management if you aren't self managing, and I assume AFH's would be even more so.
Podcast Guest on Show #79
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Hannad Qaisi
OP
Member since 2022 · 3 posts · 1 vote
3y
Quote from @Michele Fischer:

Hi, Hannad!
I live in Seattle now, but all of our rentals are in Longview, WA, so we are kinda neighbors.
I have seen adult family homes where the downstairs are where the residents live and upstairs are office and employee living quarters. Something to think about. You may also want to consider ability to restrict access to the kitchen if you are going to have any memory care type residents.
I would think you would want to puchase rather than rent a home to convert. If you purchase you have a lot more control over what modifications can be made, and most landlords will not want a revolving door of residents.
Rentals are very dependant on the quality of property management if you aren't self managing, and I assume AFH's would be even more so.
Thank you so much for the info!
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Hannad Qaisi:

I'm sorry to disappoint you. It was your first post ever, you give us no background as to your experience, and you asked a very basic question (rent vs. buy) that indicates you have almost no knowledge of this subject.

There's a lot more to consider with AFH: market demand, zoning, state/city registration, liability and insurance, taxes, etc. A lot of people see a YouTube video and think they can step into this lane and make a killing, but it's not that easy.

Buying is always preferable. If you rent, most Landlords won't allow you to operate a business. They may restrict you from a sublease or forbid you from signing a multi-year contract. You also need full control of the property so you can make improvements (e.g. handicap doorways or bathrooms).

Any house design could theoretically work, but a single-level home is ideal for handicap accessibility. It's also easier on staff if they don't have to run up and down stairs.
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
3y
@Hannad Qaisi what happens if you rent, get a very successful AFH business up & running and then the owner decides he doesn't want to renew your lease?
[email protected]248-209-6824
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Dave Skow
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
3y
@Hannad Qaisi- AFH financing is a special segment of the marketplace ....if you end up buying an exisiting AFH - make sure you have a AFH lender contacted and ready to use ....if you can qualify for a regular home purchase - you can use a regular loan ....and then convert it as local guidelines allow
a 1 story property is ideal
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Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
3y
I would think you'd want to buy a 1 story and add bedrooms personally
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Henry T.
Member since 2022 · 1k+ posts · 1k+ votes
3y
My first thought is wouldn't any licensing authority require a wheelchair accessable shower/bathroom? Not to mention house entry ramp as well. Which means you'd have to ask a landlords permission for the mods. You'll be buying I think.
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Flavius Perde
Member since 2021 · 1 post · 2 votes
3y
Hey Hannad,
I would avoid listening to Real Estate agents that do not specialize in AFH, specifically in the PNW. There are many AFH's available for rent that are already equipped for business with landlords ready to offer long-term leases (5+ years).
Buying is preferable to renting, however, in WA homes are very expensive. If you cannot afford to purchase and remodel, renting can be a first step to open your business and build income to help qualify for a home purchase within 2 years. Then you can transfer your business to a new location, or start a second location and run two homes (if you can handle that much work!)
Most home designs would not theoretically work. You definitely want all 6 bedrooms on the same level, otherwise you will have much more difficulty in the operation of your business. The ideal home is a rambler with a daylight basement. The ideal home would have a least 4 bedrooms on the upper floor, and a two car garage that can be converted into 6 bedrooms total. The basement should have at least one bedroom for employees or the operator.
My family has been running AFHs for 30+ years in Washington state.
Cheers
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Otilia Girjoaba
Bothell, WA · Member since 2026 · 2 posts · 1 vote
4mo
Quote from @Hannad Qaisi:

Hello everyone :-)

I’m on my journey to open my first AFH in Vancouver WA. One of the main things that concerns me is finding a house to convert to an AFH. I have a couple of questions regarding this topic.

Is it best to buy a house and convert it to an AFH, or rent a regular house and convert it?

Does it have to be a 1-story house or is a 2-story acceptable?

Given the high housing market in the PNW it makes me worried to buy a house just to start an AFH. Any advice would be greatly appreciated.
Good for you in your journey for an AFH. While owning may bring better stability in the long run, renting may bring less risk in starting the home. You will normally be permitted a 2 story home but main floor living is much more manageable and safe for residents.
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