Are you thinking of house hacking your property while serving a greater purpose? Do you want to earn big and fast-track your retirement with the assisted living facility rental model?
If those sound like something you would do, read along as we discuss how you can start your own assisted living facility.
Let’s dive in!
How It All Started: Marcia’s Story
Already familiar with all the house hacking options? Think again.
Today’s house hacking strategy allows you to:
- set your rate and earn big
- fast-track retirement
- achieve that sense of fulfillment
And that’s how our guest for today, Marcia Miller, got into the residential home care business.
Marcia Miller was working in a corporate job before she decided to take her elderly aunt under her wings.
She saw the looming crisis in today’s healthcare facilities. And she cannot bear to watch her aunt live in a facility that doesn’t provide the care she deserves.
So she went on to look at different models of elderly care and fell in love with the residential setting.
From there, she took a class and got her license in 2014. Then she quit her job, hacked her home into a 5-bed facility, brought her aunt home (and some friends), and never looked back.
Now she can set the rate she wants while providing quality care for the elders.
And as for her retirement?
She fast-tracked her way in and will retire comfortably in a few years.
How to Start a Residential Assisted Living Facility
Now, if you’re eager to start your own assisted living facility business, here’s an overview of how you can get started.
1. Enroll in a regulatory class and sign up for in-depth courses.
Arm yourself with knowledge on how to run the facility’s day-to-day operations. This is also where Marcia’s signature course at Step One Training Solutions comes in.
She teaches in-depth knowledge on how to thrive and start an assisted living home, emphasizing soft skills, which she considers the more challenging part to learn.
2. Check with your state and get a license.
Determine the number of seniors that you’re comfortable taking care of. Then check with your state regarding the licensing process. In Florida, you can take in as many as two seniors without a license, but you have to get a license to operate for three and above.
3. Be a part of a local network of assisted living facilities.
The key to Marcia’s success in this house hacking strategy is networking with other health care communities. Thus, the birth of The Residential Home Care Network.
The Residential Home Care Network is an online network of Adult Family Care Homes and Assisted Living Facilities where you can find private home communities that offer you or your loved ones care in a residential setting.
It’s is a great way to find a support system and brainstorm ideas on how to grow the business.
4. Determine your desired rates and consider how you can tie up with insurance programs like Medicaid.
Marcia’s current service rates are $3,000 for shared rooms and $4,000 for private rooms. But not all seniors have enough retirement funds to support their home care costs.
So to keep the business running while providing optimal care, you can tap into the state government, insurance programs, or organizations where your residents would most likely qualify.
Big Mistakes to Avoid When Starting Out
Are you already convinced to start your own assisted living house hack property? Wait up.
Consider talking to yourself and read these big mistakes you should avoid when building this kind of real estate business.
1. Not providing excellent care. This business thrives on the promise of delivering top elderly care. If you can’t be patient with the elders, this one is not for you.
2. Going into this business for money. As you probably know by now, this house hacking strategy pays up big time (more than twice the market rent!). But if that’s the only thing that motivates you, don’t sign up. Go back and read mistake #1.
3. Not networking with other assisted living facility providers. Communicating with other residential home care providers allows you to share best practices and help one another to thrive in this business. If you don’t do that, then you’re up for failure.
So if you’ve read this far and love serving others, or if you’re looking for ways to save up fast for retirement while achieving that sense of fulfillment, this one’s for you. Listen to the full version above of Episode 5 of Women Creating Wealth!