Turning a property into an assisted living home.

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Turning a property into an assisted living home.

Christopher Colburn
Real Estate Broker · Franklin, TN · Member since 2015 · 18 posts · 13 votes

Hi,

My wife and I have been working on a plan to turn investment properties into assisted living homes in Colorado. She has been in this type of industry for a while as well as knows people that have turned properties into assisted living homes. 

Right now, my main concern is if the health care rules do change (lets assume similar to the two proposed bills) how does that look to affect Medicaid and the ability to find clients? Anyone have any good insight into this?

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Taylor Chiu
Real Estate Agent · Salt Lake City, UT · Member since 2014 · 473 posts · 230 votes
9y

Glad to see this thread pop up, I was just looking for more info on SFR to assisted living conversions myself...

Is there a good source of beginner info on where to start down this path?

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  • Account Closed
    Property Manager · Baton Rouge, LA · Member since 2014 · 2k+ posts · 195 votes
    8y

    Keri Middaugh appears to have given a most interesting comment on the subject of personal care homes about 8 months ago. Like Keri, I believe that if the only reason you are getting into this REI area is to increase your bottom line, it may not be right for you. It is impossible not to increase your bottom line with thousands of "Baby Boomers" going into retirement in communities nationwide who will be needing service enriched housing but, still wanting to avoid institutional settings.

    Converting some houses into home like personal care can be tricky.   I recently found an investor who had a house needing rehab who promised to rehab it at his expense for conversion to a personal care home.  After getting into the rehab, we found that our partnering property owner had purchased a "pig with lip stick".  The property had 3 times the hidden damage as the quote given for the rehab to the property.    The owner, disregarding the hidden damage said,  he had spent twice hat was quoted to rehab the property and was finished at that point plus, wanted money refunded to him.  As the ones doing the rehab we became legally responsible for finishing the property over budget.  Plus, we didn't budget for furnishing the personal care home, or the the cost of appliances and air and heating.  We thought all this could be covered by the original quote before running into "hidden damage".

    In summation or the moral of this story, don't partner with someone who is only looking at his bottom line.  Nor should you rent a facility from such an owner.  Find someone who has an honest interest in providing a service to special need populations.  That, which you do for the "least of them" has been proven to return rewards.   You can't bet Gods giving so,  give be a PM if you believe personal care homes are as rewarding as I do.

    0Reply
  • Brandon Rodriguez
    Investor · Diamond Bar, CA · Member since 2013 · 60 posts · 28 votes
    7y

    @Christopher Colburn

    How is it going so far?  It’s been a few months just curious what info you have come across to share with us! Thanks!!

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  • Christopher Colburn
    OP
    Real Estate Broker · Franklin, TN · Member since 2015 · 18 posts · 13 votes
    7y

    Hi @Brandon Rodriguez - We just had our second daughter so had to delay some of our plans since the wife wanted to focus our finances on her first before we moved forward with investing in converting a home into an assisted living home. So I am just keep squireling money away lol.

    0Reply
  • Laura Abbott
    Specialist · New Milford, CT · Member since 2014 · 30 posts · 23 votes
    7y

    I am in the process of readying my first senior memory care home in Ridgefield Connecticut. I will have five residents with two daytime caregivers and one a week night staff.

    1Reply
  • Bob B.
    Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
    7y

    @Laura

    @Laura Abbott Where did you find 3 people that will staff the house 24-7 around the clock care?  

    0Reply
  • Laura Abbott
    Specialist · New Milford, CT · Member since 2014 · 30 posts · 23 votes
    7y

    I’m actually looking for 6 employees. Using someone else’s companion Care company for the first 6 months. 

    0Reply
  • Laura Abbott
    Specialist · New Milford, CT · Member since 2014 · 30 posts · 23 votes
    7y

    I am looking for my second property at present. If someone reading this thread is looking for a house to rent to me, and gives it to me in return she can dish, I can pay above market rent. Houses I am looking at require anywhere between one to $2 million, unless someone wants to get a mortgage. Then it would obviously cost less.

    0Reply
  • Brian Vog
    Member since 2018 · 11 posts · 0 votes
    7y

    @Taylor Chiu & @Ray Hollins

    Keep me informed as well.  I’m moving back to Arizona in 2-3 months and would love to discuss options. 

    0Reply
  • Gary B.
    Hayward, CA · Member since 2017 · 133 posts · 12 votes
    7y

    Hi Friends, I have an old hospital that can be converted into 40 bed assisted living facility. I am looking for some help to find tenant who would want to run assisted living / adult foster care in Sanger, CA. Thx !

    0Reply
  • Darryl Colletti
    Member since 2019 · 1 post · 0 votes
    6y

    Hello 

    We are looking at opening or should I say leasing or property to a property management company. We are located in Southern California just north of San Diego area. Would anyone have any ideas on how to find assisted living property management companies? I have not had any luck.

    0Reply
  • Ryan Miller
    Rental Property Investor · Albany, NY · Member since 2019 · 49 posts · 16 votes
    6y

    I wanted to post within this thread as it is similar to my question, which has to do w/ the conversion a SFR investment property into an assisted living home for individuals w/ disabilities. I have experience in this field as my 9-5 is w/ non-profit that works w/ in the social services field. Similarly, there is a growing need for housing (due to de-institutionalization), you can rent direct to the consumer or an agency, and the rents are double that of a normal tenant. Does anyone have any experience w/ this?

    0Reply
  • Detitria Woodard
    Dallas, TX · Member since 2017 · 4 posts · 7 votes
    6y

    Hi all, I am looking for a building or house and investors to start up a residential facility in Texas. I am licensed as an administrator in Texas and I owned and operated a 20 bed facility for 3 years until 2017. I currently consult businesses to get them licensed with the state within 90 days.

    @Ryan Miller, it seems you’re pretty knowledgeable about the industry, so could you elaborate on your question? Do you need to know how to get the clients? Or are you asking about the state requirements to convert the sfr into an assisted living? 

    0Reply
  • Adeola Oke
    Member since 2023 · 1 post · 0 votes
    3y
    Hi, I am a Registered Nurse in the state of Colorado and I am looking for an existing facility. If you found anything in Denver or Aurora, I am interested 
    thank you
    0Reply
  • A.J. Watson
    Jacksonville, FL · Member since 2016 · 2 posts · 0 votes
    2y
    Quote from @Detitria Woodard:

    Hi all, I am looking for a building or house and investors to start up a residential facility in Texas. I am licensed as an administrator in Texas and I owned and operated a 20 bed facility for 3 years until 2017. I currently consult businesses to get them licensed with the state within 90 days.

    @Ryan Miller, it seems you’re pretty knowledgeable about the industry, so could you elaborate on your question? Do you need to know how to get the clients? Or are you asking about the state requirements to convert the sfr into an assisted living? 


    0Reply
  • A.J. Watson
    Jacksonville, FL · Member since 2016 · 2 posts · 0 votes
    2y

    how successful has your journey been in finding this facility in the dallas area? i'm currently seeking to partner with someone, in the new orleans area, where i will focus on finding & converting a SFR into a Board & Care-level residential facility consisting of 8-10 beds

    0Reply
  • Stephen KeigheryBusiness Member
    Rental Property Investor · New Orleans, LA · Member since 2018 · 717 posts · 555 votes
    2y
    Quote from @A.J. Watson:

    how successful has your journey been in finding this facility in the dallas area? i'm currently seeking to partner with someone, in the new orleans area, where i will focus on finding & converting a SFR into a Board & Care-level residential facility consisting of 8-10 beds


    Let me know how you go in New Orleans. This is my market but I focus on long term rentals with SFR and small multifamily. I also wholesale properties here so may be able to find you an asset to convert.

    Home Buyer Louisiana4.855 Reviews
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