3 Ways to Start an Assisted Living Business (And Which One Might Be Right for You)

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Starting your assisted living business can feel confusing—especially when there’s more than one way to do it.

Should you buy an existing home? Build from the ground up? Rent a property and convert it?

Each path comes with tradeoffs—this blog will help you pick the best option based on your budget, timeline, and goals. Let’s dive in! 👇

Check out this video, too;

Why This Matters

Not all paths to owning an assisted living facility are created equal. Some take more time and other cost more money.

If you pick the wrong strategy, you could spend months stuck in licensing or tens of thousands fixing mistakes.

The good news? There are three main ways to get started—and we’ll help you understand which is the best fit for you.

Here’s what each option looks like, how to choose, and what to do next.

Check out the Profit Path tool with help analyzing which option is best for you.

Path 1: Buy an Existing Assisted Living Facility

This is often the fastest way to get into the business. You’re buying something that’s already running and making money.

✅ It's already licensed (you'll just need to do a change of ownership process to transfer the license)
✅ The home may already have trained staff and residents
✅ You can jump straight into operations with a shorter ramp-up time

💡 This is great if you want to learn the ropes while generating income.

What to Watch Out For:

Make sure the license matches the level of care you want to offer
Check for existing citations, complaints, or state violations
Verify all financials—request P&Ls, census reports, and staffing costs
Tour the property and interview staff if possible

🛠️ Pro Tip: Ask the seller to stay on for 30-90 days to help with the transition once you have completed the purchase of the facility.

Path 2: Buy or Rent a Residential Home and Convert It

This path is ideal if you want flexibility or don’t have the capital to buy right away. You find a residential home, purchase the home or sign a lease, and go through the licensing process to convert it into a care home.

✅ More flexibility if you want to test the model first
✅ A faster way to enter the market in some states

What to Watch Out For:

Make sure the city allows assisted living in that neighborhood
Confirm the home meets fire and building code requirements
The landlord (if renting) needs to know and approve your plans so you don't get shut down
You still need to go through state licensing (which takes time)

💡 This can be a great option for bootstrappers or those with a healthcare background who want to start lean.

📄 Need help? Grab our Lease Agreement Template to protect yourself before signing anything.

Path 3: Build a New Facility From the Ground Up

This option gives you full control—you design the layout, choose the number of rooms, and customize everything to your vision.

✅ Custom layout with wide halls, large bedrooms, ADA-compliant bathrooms
✅ You can build a bigger facility to serve more residents
✅ Modern design may attract higher-paying clients

What to Watch Out For:

This takes significantly more time—sometimes 12–24 months
You’ll need city zoning approval, architectural plans, permits, and contractors
Financing new construction is harder without a track record
You still need to get licensed before opening

💡 This is a smart move if you’ve already run one or two homes and are ready to scale.

🛠️ Pro Tip: Partner with experienced contractors who understand healthcare or senior housing to avoid costly rework.

Free Tools to Help You Choose the Right Path

No matter which path you’re leaning toward, you need a solid business foundation. The right tools can help you plan smarter, avoid common mistakes, and move faster.

🎯 Use these free tools to make your decision easier:

📌 Business Plan Checklist – Know exactly what to include in your plan
📌 Underwriting Calculator – Run the numbers and forecast your revenue
📌 Profit Path Tool – Determine which option is best for you and how quickly you can become profitable
📌 Lease Agreement Template – Protect yourself legally when renting

💡 These tools are perfect for beginners who want to move quickly and smartly. You can download them all on our site.

Next Steps: Take Action

If you're serious about launching your assisted living facility, here’s what to do next:

🚀 Step 1: Download the Business Plan Checklist and get your vision on paper
🚀 Step 2: Apply to our Assisted Living Investing Mastermind to get hands-on support from experienced coaches
🚀 Step 3: Pick your path—buy, rent, or build—and take your first step toward launching (check out the Profit Path tool for help with this)

💬 Got questions? Drop them below.

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