Adult Family Homes

[Jennifer B.]

Who on the site owns and/or operates adult family homes? I've done a lot of research and found that as investments their cash flow can be great.

I'm looking to gain insight into the strategy or either building new construction to be adult family homes or rehabbing large homes and converting them while hiring out the management.

Some of my research shows that the private home rent is $4500-$8000 per month per room, which also depends on the facility and care that is provided. Staffing seems to be the biggest expense along with the insurance & licensing.

I'd appreciate any more information!

[Jon Holdman]

Having recently dealt with this for my grandmother, $8000 per room per month is at the very high end for skilled nursing in our area. I'm sure this varies from area to area. That means on-site, 24 hour nurses, CNAs, other helpers, meals - the whole works. And significant licensing requirements.

Even at $4500 you're talking about assisted living. Not the same level of care, but you do need 24 hour staffing and on-call nurses.

My daughter's friend worked at several smaller facilities - 6-8 patients. They were not skilled nursing facilities, just group homes. But they still provided food and attention on a 24 hour basis. There were typically two people on duty at all times. More when they went for outings.

You're really talking about a business that has a real estate component, rather than a pure real estate investment. I do think there is demand for this sort of facility, though. When we searched for a place for my grandma, there were only a couple of facilities that had open beds at the time we needed one.