You can possibly convert it for assisted living. In CO you can have up to 8 residents before getting into zoning, though I'm not sure if that is state or county limit.
@Karen Margrave You do not have to also operate the business, thought you can generate more income that way.
I would say to look into finding an operator and leasing the building to him/her to operate the assisted living facility out of. They tend to sign long leases (10 years). You can make great returns that way.
You can look into student housing if you are near a college. Maybe rent rooms on AirBnB or other vacation rental site. @John Bull You really haven't given any worthwhile information so it is hard to help meaningfully.
Lender · Anchorage, AK & USA · Member since 2014 · 57 posts · 16 votes
10y
@John Bull
I recently looked at a property that I was thinking of flipping. This house had 7 bedrooms and two kitchens. My realtor explained that the previous owners (now a VA foreclosure) were renovating to turn it into an assisted living house. I thought that seems dumb. However in Alaska the State will pay $6500.00 per MONTH for each assisted living person in the home.
This turns more from a rental to a business because you would need a full time nurse, but if you are making $45,500.00 a month could you make a business plan to pay for a full time nursing staff and still make a profit?
You can possibly convert it for assisted living. In CO you can have up to 8 residents before getting into zoning, though I'm not sure if that is state or county limit.
@Karen Margrave You do not have to also operate the business, thought you can generate more income that way.
I would say to look into finding an operator and leasing the building to him/her to operate the assisted living facility out of. They tend to sign long leases (10 years). You can make great returns that way.
You can look into student housing if you are near a college. Maybe rent rooms on AirBnB or other vacation rental site. @John Bull You really haven't given any worthwhile information so it is hard to help meaningfully.
Lender · Lenexa, KS · Member since 2013 · 119 posts · 80 votes
10y
Hi Bill,
If you are going to go with the the assisted living option, which is becoming more and more popular, understand this is an operating business, not simply a rental. Compared to traditional large assisted living facilities, for which there are hundreds of experienced, qualified independent operators available, those operators largely do not exist for converted SF homes. Perhaps those operators will materialize over time, but for now and the near future, they really don't exist. Its your business to run. Also, the exit strategy is very difficult. Its very hard to acquire financing, especially if you are selling on a cap rate basis. I get calls to finance all the time, and cannot be of assistance.
John, the best time to figure out how to make money on a real estate investment is before you buy it. I am sure there is a way for you to profit, and many people in this site will give you lots of thoughts to help you. You just have put your self in an undesirable position.
Real Estate Broker · Anchorage, AK · Member since 2015 · 170 posts · 46 votes
10y
I see that a person said Bed and Breakfast but said no to Air bnb. One of my friends Rents out four bedrooms in her SFH just fine with it.
Boarding house, VRBO if it's in a good location, and the assisted living home doesn't seem like a bad idea if you've ever done / feel comfortable with a more traditional business plan.
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
10y
I don't know about your area, but here in California Assisted Living means people that are not able to live "independently", meaning requiring "assistance" with their daily living routines.
A better option is renting rooms to seniors and being more of a senior living residence for active seniors. Many seniors are widowed and do not want to live on their own, or with relatives. It's a great way for them to have peers to communicate with, go on outings with etc. You'd need a house manager to cook/clean, etc. Check with local senior living places and see what they get per room. Many people prefer a smaller setting than the large retirement homes.