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Updated over 10 years ago on . Most recent reply

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Jake Kozul
  • Real Estate Investor
  • Grand Rapids, MI
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Group Home/Adult Foster Care...

Jake Kozul
  • Real Estate Investor
  • Grand Rapids, MI
Posted

I have a 5 bedroom/2 bathroom house that I have coming vacant in the next 60 days. I had done some research into adult foster care as an option for renting it out this time around. I have some friends in the home health care industry, and they had mentioned it to me as a possible option. Has anyone had any experience going this route...if so, do you have any information sources I can reference? Thanks. 

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Bill Gulley#3 Guru, Book, & Course Reviews Contributor
  • Investor, Entrepreneur, Educator
  • Springfield, MO
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Bill Gulley#3 Guru, Book, & Course Reviews Contributor
  • Investor, Entrepreneur, Educator
  • Springfield, MO
Replied

Two stories aren't good unless you have a handicap accessible elevator.

Group homes are often covered by state requirements, your division of health and welfare or similar agency. There will often be property requirements, fire suppression system can be expensive, light fixtures, commercial kitchen requirements, electrical and plumbing requirements as well as minimum room sizes for bedroom, dining area and living spaces.

I'd not jump in based on the opinion of some medical or home healthcare worker, they may not be aware of compliance matters much less the business side of the market.

Speak to other administrators outside your market area to begin with, they can give you the number of beds required for the population, so can state authorities. This is a controlled business, unregulated competition can actually hurt services provided in an area and know in some areas this can be very political, nursing home operators and related facilities carry clout. Just saying, it's not entirely up to you to open a group home.....depends on who you serve too.

Best approach I think for a residence is to contact those agencies that serve the population and lease to them, this can be a commercial lease with them making some or all improvements. Your involvement is leasing to that non-profit or care agency, nothing more and they do the compliance.

Other options might be a half way house, domestic violence safe house, or physical rehab home. Agencies to speak to are those serving the blind, physical challenges, mental care, domestic violence centers, the clerk of court can point you to half way residences or court appointed agencies.

Chances are you'll need a zoning exception, a call to your zoning authority will shed light on the braid damage required.

There are other threads on this topic on BP, might search some too. :) 

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