Why You Should Convert Houses into an assisted living facility? Answer: Financial Security and Piece of Mind! You got into real estate to make a lot of money in case you forgot. Here’s even more good news. You have already done the hard part! You already own the property, and it is move in ready right? I will give you a week to finish it up, but that’s it. Get to work! Ok, let’s get back to the money.
Do you have a nice place not located between two rival outlaw biker gang clubhouses? If you do, you may be able to rent out EACH bedroom for $4000 PER MONTH! If the bedrooms are big enough, and your state allows it, you may be able to put two people in one room for a total of $8000 per month per bedroom. Yes, that’s right, $8000 per month, per bedroom. If you have a five bedroom house, that’s $40,000 per month, every month. Of course not every dollar is profit, but I didn’t have to tell you that, did I? If you’re like me, you’ll want to pay people to do most of the work for the least money possible.
Don’t worry, I will tell you how to do that too, but not quite yet. You may want to get an energy drink of some kind, because you’ll want to be wide awake for this next part. If you think pulling in $20,000 a month sounds good, wait until I explain how you can get up to $40,000 in advance to get things up and running. Enough about all the money you’ll make for now. I also hope that all the money talk didn’t make you forget about the nice people who will be paying you to live in your assisted living facility. There are several more reasons to convert your empty or non performing rentals into assisted living facility.
People who live in assisted living facility and call them home are less likely to trash the place.
They’re also less likely to spend your rent money on a new tattoo.
You won’t get a phone call from the DEA asking about the house full of high grade marijuana either.
Assisted living facility residents can’t just pick up and move while you’re spending the weekend in Key West. They need time to find a place as nice as your assisted living facility, and you know that’s going to be hard to do. Tired landlords happy with clearing a couple hundred dollars a month are screwed if their tenants skip out on their leases. They can’t make their mortgage payment until they find another renter who may stay six or seven months. What about security deposits? Have you ever had to evict a bad tenant?
What’s losing a $200 security deposit to skip out on three months back rent to a tenant who could care less if you’ll go into foreclosure? Tenants know they are protected more than landlords in most states, and they take advantage of pro-tenant laws. They also know they did way more than $200 damage to your house, not to mention the things they stole too. So they figure they’ll let you keep their 200 bucks and call it even. When you own an assisted living facility, you’re no longer in the real estate business. You don’t charge tiny security deposits. You demand, and get. up to $8000 per resident in advance. $8000 goes a long way in helping you survive having a vacancy in one of your five ALF for a couple weeks.
When there’s that much money involved, you usually don’t have to worry about 87 year old deadbeat assisted living facility residents skipping out on you in the middle of the night. Even if you lose one of your residents to… lets say, more natural causes, then you still have your other four to nine residents each paying you $4000 per month. You can get by on $16,000 per month for a couple weeks while you get the next person on your waiting list moved in, can’t you? Here’s Another Reason to Convert to assisted living facility. The folks in your assisted living facility will call it home, and will treat it as such. Let’s face it, its hard for a group of 87 year old residents to trash a house.
Since you could have up to eight residents in some states, a sense of community pride will ensure that your property is not trashed or turned into a crack house. Don’t forget about the professionals who will be caring for, or supervising your residents. They have a vested interest, and it is part of their duties to do daily maintenance that will prevent major system failures. The professionals working in your assisted living facility will also be able to keep and eye on your property while making sure a “Grannies Gone Wild” video is NOT filmed in your assisted living facility.