All Forum Posts by: Keegan Schaub

I’ve been through two managers now and decided to recently take over duties myself remotely 

My broker helped a bit but I analyzed the P&Ls myself

90% SBA loan + 5% seller carry + 5% my own equity for the RE portion. My loan broker came in clutch and was able to find a bank to give me a 75% LTV loan on the remaining business cost $80k. Thanks!

 Yes, I was!

I’m a Portland-based real estate broker with a focus on Residential Assisted Living (RAL) investments. I personally own and operate a RAL home remotely, managing both the business and real estate, so I understand the unique challenges and opportunities in this niche. If you're looking to get into assisted living or need guidance on finding, structuring, or optimizing your investment, I’m happy to help.

Additionally, I currently have a RAL property available in Washington with an assumable loan for the real estate only(not the business). Purchase price is $1.5M, and the property cash flows $3K–$4K per month with a long-term operator in place. This is a great opportunity for investors looking for steady returns without running the business.

Feel free to reach out if you're interested in the property or need guidance in the RAL space!

Looking forward to connecting,

Residential Assisted Living (RAL) is becoming an increasingly popular asset class for real estate investors looking for high cash flow opportunities. However, there are two primary ways to invest in this space: owning only the real estate or owning both the real estate and the business. Each approach has its own benefits, challenges, and potential returns. Here’s a breakdown of what to consider when deciding between these two investment models.

Owning Only the Real Estate

Some investors choose to simply own the property and lease it to an operator who runs the assisted living business. This approach functions similarly to a traditional commercial lease with longer-term tenants and higher-than-average rents.

Pros:

• Consistent, Passive Income – Since RAL operators typically sign long-term leases (often 5–10 years), landlords enjoy stable rental income with fewer vacancies.
• Reduced Liability – By leasing to an operator, the investor avoids the operational complexities and legal responsibilities associated with caring for residents.
• Lower Workload – No need to manage staffing, compliance, or daily operations, making it a more passive investment.

Cons:

• Limited Cash Flow Potential – While the rents are higher than standard residential properties, they don’t come close to the potential profits of owning the business.
• Dependence on Operator Success – If the operator fails to maintain a profitable business, the investor risks losing a reliable tenant, leading to turnover and potential vacancy.
• Less Control – The property owner has little say in how the business is run, which can impact property value and tenant reliability.

Owning the Real Estate and the Business

For those looking for maximum cash flow, owning both the property and the assisted living business presents a lucrative opportunity. This means not only collecting rent but also managing the care services provided to residents.

Pros:

• Higher Cash Flow – RAL businesses can generate substantial revenue, often producing net profits of $5,000–$20,000 per month per home, depending on occupancy and pricing.
• Full Control – The owner can directly manage operations, staffing, and resident care, ensuring high standards and a well-run facility.
• Increased Property Value – A successful RAL business can significantly boost the value of the underlying real estate, making it an even more valuable long-term asset.

Cons:

• Higher Workload – Running an assisted living home requires managing caregivers, compliance with state regulations, and ensuring quality care for residents.
• Greater Risk – Business success is dependent on maintaining high occupancy rates, providing quality care, and managing expenses effectively.
• Licensing and Compliance Requirements – State and local regulations for RAL facilities can be complex, requiring significant time and resources to stay compliant.

Which Strategy is Right for You?

If you’re an investor looking for a hands-off, steady income stream, owning only the real estate may be the better fit. You can benefit from long-term leases, stable cash flow, and property appreciation without the headaches of running the business.

However, if you’re willing to take on the operational responsibilities, owning both the real estate and the RAL business offers significantly higher income potential. While it requires more effort and risk, it also gives you full control over the property and its success.

Final Thoughts

Residential Assisted Living is a powerful way to generate strong cash flow and long-term wealth. Whether you choose to invest in just the real estate or take on the business as well, understanding the pros and cons of each model will help you make an informed decision. For investors willing to put in the work, owning both the property and the business can be a game-changer in achieving financial freedom.

I'd be interested!

The demand for quality senior housing is surging, and with the baby boomer generation retiring at a rapid pace, the need for assisted living facilities is greater than ever. The "Silver Tsunami" is upon us, bringing unprecedented opportunities for investors looking to enter the Residential Assisted Living (RAL) space. As someone who owns and operates a 10-bed assisted living facility in Tucson, I’ve seen firsthand the financial potential and impact of this business.

The Growing Demand for Assisted Living

By 2030, all baby boomers will be over 65, with projections showing that the U.S. senior population will reach 73 million. Many of these individuals will require assistance with daily activities, creating a massive demand for quality assisted living homes.

According to industry reports, occupancy rates in assisted living facilities have rebounded post-pandemic, with national averages reaching 85% in early 2025. With rising life expectancy and a shortage of senior housing options, this number is expected to climb even higher in the coming years.

Profitability of Residential Assisted Living

Unlike traditional rental properties, RAL homes operate as businesses rather than just real estate investments. With the ability to generate significantly higher revenue per bed compared to standard rental units, assisted living homes can produce strong cash flow and long-term appreciation.

• Average Revenue: $4,500 – $7,000 per resident per month
• 10-Bed Facility Gross Income: $45,000 – $70,000/month
• Net Profit Margins: 25% – 40% (depending on location, staffing, and operational costs)

Investors who strategically position their facilities in high-demand markets can see significant returns while also providing a much-needed service to the aging population.

Best Markets for Residential Assisted Living in 2025

When choosing a location for a RAL investment, consider markets with:

• A growing senior population
• Favorable zoning laws
• Strong median income levels
• Limited supply of assisted living homes

M top cities for RAL investments in 2025 include:

• Phoenix, AZ – High retirement population and business-friendly regulations
• Tucson, AZ – Strong demand, lower property costs
• Portland, OR – Growing need for senior care, high barrier to entry for competition
• Seattle, WA – Affluent senior market with a shortage of small-scale care homes
• Denver, CO – Fast-growing retirement demographic

Why You Should Consider Investing in RAL

Owning and operating a Residential Assisted Living home provides not only financial rewards but also the opportunity to make a meaningful impact on the lives of seniors. It’s an investment that blends real estate with a recession-resistant, needs-based business model.

From my own experience, managing a 10-bed facility has given me valuable insights into operations, staffing, and regulations—insights that can help others looking to enter this space successfully. If you’re considering investing in assisted living, I’d love to connect and share my experiences to help you navigate this unique and rewarding niche.

Thinking about getting into RAL? Let’s connect! Whether you're just exploring the opportunity or actively looking for your first assisted living investment, I’m happy to share insights and help guide you through the process. Reach out and let’s talk!

Depends on if he wants to keep the property in Tacoma or does he need it as a down payment for a property in GA. If he's able to rent out the property in Tacoma either STR or MTR (military bases have great tenants) to hold it long term as long as it cashflows enough. I know a few good agents in Tacoma area who can help him sell if needed. Let me know!