Episode 77 | Is a 6-Bed Facility Profitable in Assisted Living

In this episode of the Assisted Living Investing Podcast, host Brandon Gustafson explores the profitability of operating a six-bed assisted living facility. Brandon provides a detailed financial breakdown, analyzing key expenses such as labor, insurance, utilities, food, and debt service. He discusses the importance of understanding income projections, managing vacancies, and whether being hands-on as an administrator can influence profitability. Additionally, the episode offers practical advice on market research, securing funds, and the foundational steps required for launching an assisted living business. This episode is invaluable for beginners looking to navigate the complexities of assisted living investments.

00:00 Introduction to Assisted Living Investing

00:22 Is a Six-Bed Assisted Living Facility Profitable?

01:41 Understanding the Numbers: Income and Expenses

05:17 Labor Costs: The Biggest Expense

09:44 Other Major Expenses: Insurance, Utilities, Food, and Debt Service

16:16 Making the Numbers Work: Strategies for Profitability

23:14 Final Thoughts and Next Steps

23:35 Underwriting Assisted Living Investments

23:57 Launchpad Bundle and Free Resources

24:58 Adjusting Monthly Rent for Residents

28:13 Understanding Full-Time Equivalent (FTE)

30:30 Finding and Evaluating Facilities for Sale

33:14 Private vs. Shared Rooms and Administrator Roles

38:14 Handling Staff and Resident Challenges

41:46 All-Inclusive Fees and Caregiver Options

47:00 Finding Great Locations and Final Thoughts

Resources Mentioned:

Visit our website, AssistedLivingInvesting.net, for additional resources, including our year-long mastermind program and free underwriting calculator.

Get your free business plan checklist today: https://urlgeni.us/alibpc

Learn about the Assisted Living Investing Mastermind: assistedlivinginvesting.net/mastermind

Apply for the Mastermind today: alimastermind.com/application

Join the Bussiness Foundation Basics Workshop: Assisted Living Business Foundation Basics

Learn the five steps to help you start an assisted living business: https://youtube.com/live/dRVCa80SOyM

Get the 12 Week Year Book: https://amzn.to/4bAOpQf

Marketing Made Simple by Donald Miller: https://amzn.to/3ECoNY5

Who Not How by Benjamin Hardy : https://bit.ly/whonothowbooklink

Courses:
- Do you need guidance on your journey to launching your assisted living business: https://urlgeni.us/aliala
- Do you need help building your business plan: https://urlgeni.us/alibpg

FREE Resources:
- Business Plan Checklist: https://urlgeni.us/alibpc
- Calculator: https://urlgeni.us/alicalc
- Lease Agreement Template: https://urlgeni.us/alila
- ProfitPath Analysis Tool: https://urlgeni.us/aliprofitpath
- Grant Writing Template: https://urlgeni.us/aligrant
Need help with your payroll? Get Gusto: https://gusto.com/i/brandon9590

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