Residential assisted living
I am looking to find an investor/partner or someone to just bounce ideas off of in order to begin a residential assisted living facility in the Cincinnati Ohio area. 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. If anyone is interested please let me know. Feel free to tell if my numbers are up to snuff as well. Thanks in advance!
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Walter, License Applications Packets differ State by State but, should be of consideration first. Can you get a facility going at any cost? should be another first question to answer. For example in Louisiana we were stopped in our tracks. After sending in a $600 Application Fee, we were told the State needed $60 per room proposed more just for the License. Letter of Intent is required showing proposed capacity, address, and proposed date of operations. A copy of Floor Plans had to be Stamped approval by State Fire Marshal with Fire Marshal letter for "Health care Guidelines" clearance. Needed a criminal background check on proposed operators plus all owners. $100,000 letter of credit was needed or proof of 1st months operational cost. $300,000 professional liability insurance was needed and said amount in General Liability.
To make a long story short, this is a business start up. Unless you are already financially independent you are going to need a business plan and a loan like all of us. I have some answers to your problem but, you will need to private message me. Advertisement are in BP Market place only.