Buying vs. Converting: Best Path to Start Assisted Living Home

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Starting your own assisted living business is exciting, but there’s a big decision you need to make right away: Should you buy an existing facility or convert a home into an assisted living space? Both options have their benefits and challenges. Let’s break them down so you can make the best choice for your goals!

Check out the video, too:

The Importance of a Business Plan

Before diving into the details, take a moment to create a solid business plan. This will help you understand your goals, budget, and vision. Not sure where to start? Use resources like the Business Plan Checklist to outline your strategy, or get the Launchpad Bundle to help map out your costs. A clear plan makes everything easier!

Buying an Existing Assisted Living Facility

The Pros

  1. Instant Operations
    When you buy an existing facility, it’s already up and running. You’ll have:
  • Trained staff in place.
  • Residents providing immediate income.
  • Systems like meal planning and medication management already set up.

  1. Simpler Licensing
    You can often skip the long licensing process by completing a Change of Ownership (CHOW).

  2. Grandfathered Regulations
    Older facilities may be exempt from newer, stricter regulations, saving you time and money on upgrades.

The Cons

  1. High Upfront Costs
    You’re buying more than a building—you’re buying a functioning business. That premium price can be a big investment.

  2. Seller Dynamics
    The seller may stay involved after the sale, which can create tension. Set clear boundaries to avoid conflict.

Converting a Home into an Assisted Living Facility

The Pros

  1. Tailored Design
    Starting fresh means you can design the home exactly how you want. From modern decor to the perfect layout, the space will reflect your vision.

  2. Lower Purchase Price
    Buying a residential home is often cheaper than purchasing a fully operational facility.

The Cons

  1. Long Licensing Process
    You’ll need to apply for a new license, which includes inspections and approvals. This can take months (or longer).

  2. High Renovation Costs
    Turning a house into an assisted living facility requires big changes:

  • Adding ramps and widening doorways for wheelchair access.
  • Installing fire sprinklers and upgrading bathrooms.
  • Meeting state and city safety regulations.
  1. No Immediate Income
    Since you’re starting from scratch, you’ll need to cover all the costs—like renovations, payroll, and marketing—before residents move in and revenue starts coming in.

How to Decide What’s Right for You

Your choice will depend on your goals and resources.

  • Buy an Existing Facility if:

    • You want to start earning profits sooner.
    • You prefer a simpler licensing process.
    • You’re comfortable paying more upfront.

  • Convert a Home if:

    • You want to design a custom space that matches your vision.
    • You’re okay with waiting longer to open.
    • You enjoy renovation projects.

Pro Tips for Both Options

  1. Check Zoning Laws Early
    Make sure your property is zoned for assisted living.

  2. Work with the Fire Department
    They’ll inspect your property and tell you what changes are needed for safety compliance.

  3. Build a Team
    Whether you’re buying or converting, you’ll need a team of experts, like contractors, legal advisors, and accountants, to guide you.

Final Thoughts

Both paths—buying or converting—can lead to a successful assisted living business. What matters most is aligning your choice with your goals, budget, and timeline. Do your research, involve professionals, and take one step at a time.

Whichever route you choose, you’re building a business that makes a difference in people’s lives—and that’s what truly matters! You’ve got this!

Need Some Help?

Starting your assisted living business is a significant step toward achieving financial and time freedom. Whether you purchase an existing facility or convert a home, the key is to move forward with a plan and consistent action.

To help you get started, download our Business Plan Checklist. This resource will guide you through the steps of building a solid business plan. Additionally, explore the Assisted Living Investing Mastermind program. This comprehensive 12-month program is designed to guide you through every step of owning an assisted living facility and provide you with invaluable coaching support. Let's turn your dream of owning an assisted living facility into reality!

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