All Forum Posts by: Gary F.

Who is currently renting their SFRs to care home business?  I'd like to hear about your experiences and recommendations like lease terms.  Thanks

Carehomes are the future. High ROIs to be had while serving the elderly. The Baby boomers are of age and are the largest population currently. They are going to need a place to stay and be cared for. 

The official name is different for each state or county. But generally, its up to 6 residents and must have 2 staff 24/7. They provide basic care needs for the residents, like bathing, medications, meals, and sometimes outings and transportation to medical appointments. 

Carehome staff to resident ratio is 2:6 vs assisting living facilities 1:10+.  Carehomes overall provide better care and attention to residents because of this. And residents are not isolated in separate apartments but in a private home with bedrooms. So its also home environment vs. an institution or hotel/apartment. 

A carehome operator administrator must be licensed by the local governing agency. To maintain the license requires passing inspections, and continuing education.

As investors, you can choose to simply lease a home that's been made wheelchair accessible. This may be as simple as ensuring hallways and doorways are wide enough (usually a 32" is sufficient), wheelchair ramps 12" for every 1" of rise; example 6" stair rise=6' ramp), and safe accessible bathrooms (walk in showers are best but not usually required).  ADA requirements can be used to set up your house though not required as ADA does not apply to private residences. Leasing the home is passive investment. 

You can choose to become involved in the daily operations for greater ROI but now that's the business part of the carehome. You would need to be a licensed administrator. Now you'd be an active investor, much more stress of course as running a carehome is quite involved dealing the licensing, complaints, inspections, residents, families, and medical liabilities.

Either way, the ROI is much greater than the traditional rental.

New Totally Remodeled Home in 95119, two blocks from Kaiser San Jose, quiet street
1843sf, 2-car garage
5 bedrooms. Can accommodate 6 residents and your caregivers
Large master bedroom with private bathroom
Kitchen with stainless steel appliances, induction stove
Recessed LED lighting throughout

New Roof
New Garage door and opener
New Copper Plumbing
New water heater
New air conditioning system on Nest thermostat
New flooring
New texturing and paint
New electrical wiring and all outlets

Beautifully landscaped Japanese garden in front and backyards

Your residents, families, and staff will feel at home here!

If you are an EXPERIENCED LICENSED carehome operator administrator and would like to lease this home long term please email for details. A Lease with Option to Buy is possible too for the right person. Terms are negotiable to make a win-win situation for us both.

https://www.biggerpockets.com/forums/548-californi...

Here's a good ongoing post I started quite awhile back. ADUs are a great way to invest, right in your own backyard, literally. 

Have you built one already? I'm looking to do mine sometime in 2019. Prices keep going up and the darn tarriffs arent helping. But for cash flow and adding equity, if you can hold it, its going to likely be better than many other investments. 

Originally posted by @Jeff Lee:

What kind of $/ft is anybody else getting bids for on your ADU? I have plans for a detached unit in the backyard 440 square feet 1 bed 1 bath.

I got 2 bids from separate builders for $250k which is something like $550/square foot. I’m new to additions & remodels so I can’t tell if this is a normal price for the market right now or are people trying to take advantage of an inexperienced homeowner (me).

 $550/sf is ridiculously high! Run away from those contractors!  If going prefab modular or factory built you can get them around $375/sf. And even this number is high.  

It'll be interesting to see upcoming changes for 2019 also. Every so often the codes are more relaxed and more creative.  We can now build two-story ADUs and two-bedroom units. 

Originally posted by @Joo Park:

i'm leaning towards selling the home and marketing it as a "cashflow positive" home since renting the main unit and garage studio will bring in enough money to cover the cost.  If unsuccessful in getting the price I'm looking for, then, I will rent out both units.  So, it seems like getting the studio permitted makes sense to ease the perspective buyer. 

Im interested in what you decided to do.  A couple of my thoughts. A primary home may be less attractive without an actual garage.  More so with an unpermitted conversion as it is a red flag for city inspectors. On major work like a conversion I would never go without permits. 

@Taylor Tapp That August lock does look pretty nice. It would eliminate the problem I’m having with doodoo guests that can’t operate the Schlage key pad.

Great topic. I installed code door locks for front door and room door. While it’s been nice not having to chase people down who take keys with them it’s also presented new problems. Some People are really just stupid and can’t seem to lock the front door. I have written instructions and some people still can’t lock it or walk out and not bother trying to lock the door. I’ve come home to find an unlocked door. Sheesh. Frustrating. I don’t trust those remote WiFi connected locks as hackers can access those. There’s also the issue of internet problems that will render the lock inoperable.

Nice. So you just pulled a deal off the MLS, the numbers worked, and voila...done deal ! Especially since you’re an REA you also still collected a commission? Killaz. I’m so amazed at these prices in other areas of the country. $255 in San Jose can’t even get a studio condo. Even in a D class neighborhood. Nutz. Are you going to upgrade or do any units need updating? Any other future improvements planned?

Who would like to get some coffee/lunch and talk investing?