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Updated about 4 years ago on . Most recent reply

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13
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2
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Mike Vaupel
  • Investor
  • Dubuque, IA
2
Votes |
13
Posts

Residential Assisted Living.

Mike Vaupel
  • Investor
  • Dubuque, IA
Posted
Thinking about trying this. Any advice? Curious if anyone in Iowa is doing this aleeady

Most Popular Reply

User Stats

7
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7
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Walter Beitusch
  • New Vienna , OH
7
Votes |
7
Posts
Walter Beitusch
  • New Vienna , OH
Replied

I’m looking at starting a residential assisted living facility in the future. My experience as a nurse practitioner tells me that this could be a very successful business. In my planning I have figured that labor can go no higher than 40% of revenue in order to contain costs. The average rent for residents is about $3,800 per month. With a facility that would house 10 residents 1 facility could bring in between $38,000 and $30,400 monthly before all expenses considering an 80% occupancy rate. Labor costs would run about $15,200. This would leave between $22,800 and $15,200 to cover day to day expenses. I was figuring the split might go this way 40% for labor, 40% for expenses, and 20% profit. I was wondering what anyone thinks of this breakdown. I figured the labor costs as 40% of the full occupancy amount since the facility will need to be fully staffed 24/7. Any suggestions or ideas would be appreciated. Thanks in advance!

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