This is a decent business opportunity for the right people, for just $695,000:
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
Are you looking for an experienced agent to help you buy or sell a home?
Contact Jim the Realtor!
- 682 S. Coast Hwy 101, Suite #110
Encinitas, CA 92024 - (858) 997-3801 call or text
- klingerealty@gmail.com
CA DRE #01527365, CA DRE #00873197
Definitely some possibilities there, even if it isn’t used as a nursing home. Can it be converted back into residential pretty easily for a large multi-generation family?
Lol great title, Jim.
The only issue I saw was that there were not a lot of ADA grab bars in the bathroom/shower and wheelchair bound residents would have trouble with the shower (not a roll in shower.)
The price you quoted (1-1.5k/month) is on the low end of what I’ve seen for assisted living.
I can relate to what you went through with your dad. We built an accessible granny flat for my in-laws to live in. Even with expensive snags getting it built – it will still be cost effective compared to putting Dad in assisted living.
Someone’s going to make a nice living running that place.
I would put a six figure investment into an LLC that needs a passive investor for that busines.
As Caron noted, it is kind of an odd mix and match of rest home and large SFH.
As an aside, near my house there is an enormous 10br/14ba house/constuction project, still wrapped in Tyvek. The original owner was a doctor, who claimed he was building his dream home, but was really building something like this. That’s not really something you can do in residential areas around here, so the county came down on him and now its an REO. Its on 2 acres of land, so I wouldn’t be surprised if they just tore in down at this point and sold the land.
Let’s see, if you paid just one staff about $8000/month in salary + benefits + payroll taxes, and then had to pay $4000/month in housing expenses, then you’re looking at $12000/month in expenses. $2000/month/head (6 heads)won’t even pay the bills.
I think you could easily get $3,000 per room if you had 24/7 skilled nursing care, healthy meals, entertainment of some sort, and transportation to/from appointments, etc. Then you have the labor (and supplies) costs for cleaning/maintenance, administration, shopping/meal prep, assistants, etc. which would be in addition to the skilled nursing care. Unfortunately, this is the reality of assisted living. It’s not cheap. 🙁
In my area most of the “board and care” facilities are run by Philipino families and they don’t pay their in-home assistant family members / friends anywhere near Jeeman’s number. They typically get two friends or family members from the PI to live and work there for free rent and around $1k per month. Even then the owners need 3 or more locations to make a decent living. The places that charge 1500 per room can only make money if you work em yourself or pay very low wages – meaning the residents can’t be in such a condition as to require medical staff in-home.
Now if you are prepared with appropriate staff and equipment to deal with alzhiemers, demetia, etc. then you can charge 3k to 4.5k per room, but obviously your cost structure goes to another level. Bottom line is it’s not easy money.