All Forum Posts by: Christopher Colburn

@Loretta C. - Oh, and the reason why I am wanting to start this in Colorado and not Texas is first and foremost my wife. She has the most experience with working this state and their requirements. Also, all of her contacts for this type of industry are here and zero in Texas. It is just safer to start something like this in an environment where you have a better chance of succeeding. 

@Andrew Wong - Basically, the assisted living home will be run by my wife and I. We will setup an LLC or another type of company that gives us the best protection. My wife will be the main live-in caretaker for the consumers (clients) till we have a stable income and then we will hire our a live-in caretaker for the property. The way that Colorado works we will not need to have a nurse on staff just a licensed caretaker. Of course this is just the simplistic version of my business plan.

@Joe L. - We have already learned of all of the requirements that Colorado has for this type of assisted living home. For example the requirement for bathrooms, sprinkler systems, etc. Getting a property setup as an assisted living home in Colorado is not difficult it just requires the ability to invest more into the property than a normal rental home would.

@Loretta C. - Our goal is cash-pay clients but I have seen other people who try to start this type of assisted living home try to just focus on getting only these types of clients since you will get a higher return from them. What I have seen is that they wait toooooo long for a these clients in order to make a better income and almost drive the business into the ground. My wife has experience and a good amount of contacts to help us find the cash-pay clients but since Medicaid/Medicare clients are a very stable source of income (even though it is lower than cash-pay) I rather know that stability of Medicaid/Medicare is still there. [If that makes sense :)]

@Trevor Lohman - Going this route does have a good amount of rewards but also in my opinion has a lot more risks and expenses. I am still probably a year or two away from getting this fully started but rather know as soon as possible the amount of ways I can get screwed with my pants on before I actually pull the trigger. lol

Hi,

My wife and I have been working on a plan to turn investment properties into assisted living homes in Colorado. She has been in this type of industry for a while as well as knows people that have turned properties into assisted living homes. 

Right now, my main concern is if the health care rules do change (lets assume similar to the two proposed bills) how does that look to affect Medicaid and the ability to find clients? Anyone have any good insight into this?

@Shane M. @Daniel Y. @Mark S.

Hi Everyone - If you are still looking for a quality property management company in the DFW area let me know. I am co-owner of Verdei Properties and we work with property investors in and outside of the Texas area to manage their properties. I won't bore you with the details unless you are interested but here is our website: verdie.co. 

@Justin Harford - I am not sure what your lease or the lease of the previous owner says but normally there is a section that states that tenants cannot do anything that might be considered a nuisance, offensive, noisy, or dangerous.

Gun fire, no matter the circumstance, in a multi-unit property falls under the category of dangerous. My suggestion (like others I have seen in this thread) would to provide the tenants with the ability move-out now with no penalties and if they do not accept you might have to push for a eviction. 

If this was a property I managed I would worry that if I know these tenants have guns and are not safe with them they could accidentally/intentionally discharge their weapon again and hurt a tenant next door. You really do not need that type of issue.

Also, depending on your state you can put in your lease that you do not allow guns on your property. 

Hey @Ryan Esposto,

I am pretty sure (but not 100% certain) that in CA you have to have a real estate license in order to become a property manager. If this property management company keeps pushing you for payment another avenue you could take is reporting to them to the California Real Estate Commission. No one wants to put their Brokers License in jeopardy and that will probably be an easier first step before going to court (if it ever gets that far). If you look at your management agreement it should have their license number on the contract.

I hear about these horror stories from other clients of ours and it is extremely frustrating since it can easily make it sound like property management companies are like used car sales men. Hope if you get another management company for any of your other property they treat you much better. 

Similar to what you have been hearing from everyone else letting tenants have that much autonomy for a house they are renting usually leads to a hand slap to the head once they move out. If a tenant requests a repaint or a different color we would be the only ones to do it and usually if they have been good tenants and provide it as a reward for renewing their lease.