Small Assisted Living In NY
I saw a concept that intrigued me, I'm wondering if anyone has heard of it: it was an assisted living facility, except there were 6 people in the home. I think it was an elderly couple, and about 4 other elderly women.
I spoke with the woman who runs the place, they charge $3500 a month for a room, they provide 3 meals and a snack, and basic housekeeping, laundry and some transportation.
It seemed like a good deal to me, 5 people (the couple splits the 3500) each payiing, is $17,500 in rental income per month. Granted it was a beautiful house on the north shore of Long Island, probabyl cost a million or so, but still, I'd never seen anything like it, and Ithink its a fabolous idea. Any thoughts?
it is a little misleading to compare this operation to any other form of real estate endeavor. Granted the income looks great-- but think about the work/expenses. Do you want to cook three meals a day for 6? Do you want to make beds, clean house wash the bathroom? When one of those little old ladies falls and breaks a hip are you ready to administer first aid until the paramedics come?
I operated a 70 unit assisted living, we did not provide meals but we did a lot more service than we did in apartments. We did ok-- mostly because we got low income housing tax credits and a subsidy from the city of Chicago. But it was no home run-- by the time you subtracted the costs of all those services we were just about where we would have been if we rented it conventionally. And we had a lot more units to spread the added costs over than you would in a house.
On the other hand tenants would frequently come up to me and tell me I had made their lives worth living again and I have great stories about Jack the ladies man we picked up from the Salvation Army and the time the City sent us all the homeless people from their sweep of the airport. And the crazy woman who came down complaining that someone had stolen her dentures.