Residential Assisted Living.

[Mike Vaupel]

Thinking about trying this. Any advice? Curious if anyone in Iowa is doing this aleeady

[Ron Rohrssen]

Can you add some detail? This is a little vague.

[Mike Vaupel]

@Ron Rohrssen basically converting a SFR or multi family property into a residential assisted living center. Hiring staff and becoming licensed. Tenant and Medicaid would pay rent.

[Justin Owens]

@Mike Vaupel That's the jist. We are almost ready to be licensed as the rehab of the home is nearly complete. I think a lot would depend on your local city/county/and state regulations.

[Mike Vaupel]

@Justin Owens. Good for u. I wish u the best. When do u expect to open? What have been ur biggest obstacles to overcome? How big of a facility? Any advice to offer? Or suggested resources?

[Justin Owens]

@Mike Vaupel We hope to open a home licensed for 10 beds by the end of August but it will depend on how quick the state can come out for the inspection. The biggest hurdle had been getting a grasp on the rules and regulations and finding care givers to hire. Preparing to manage employees has also been a bit of a learning curve.

[Account Closed]

@Justin Owens what sort of facility, specifically, are you going to operate? Senior Living, Elderly Care, Alzheimers or Dementia? I've heard there are challenges with them all. I also read there are companies that you can outsource all personnel to. Yes, you may have less profit margin on the business side but it will still be higher than a long term rental. 

[Justin Owens]

@Larry Hawkins It is a residential assisted living facility. Licensed for 10 beds. It is not a skilled medical center. Caregivers at facilities such as ours are licensed by the state but they are not nurses or doctors.

[Walter Beitusch]

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!

[Tomasz S.]

@Justin Owens, are you sharing the beds?

[Wogderess H.]

@Justin Owens did you open up this facility? If so, can you please recap your pre-open and post open experience both with state regulations and operations after? I'd greatly appreciate that as I'm getting started in the business. Thanks. 

[Nielsen Manalad]

post shows a year old, but those rent number seems pretty high - comparable to nice ALFs in Orange County here in California.

[Steven Kowalski]

Is anyone in this thread up and running? If so I would like to discuss.

[Chris Blackburn]

There are a number of business plans out there for this type of model:  https://residentialassistedliv...

We have a HUGE mansion 17,000 sq ft in our small town that could support a number of people but it is zoned single family (Soon to allow up to 4 units on it)   Oregon may be a great place for this.   A main home and then 3 of these put to the site?  boxabl   They only cost $250 a month and figure $40K-$75K for the infrastructure, SDC's and incidentals-  Great way to house hack and ad rent revenue.

https://www.boxabl.com/reserve...

I think I am going to reserve 3 or 4 of them.  They would rent out in my area for $700-$1000 a month.