I Sold My Assisted Living Facility: Here’s What I Learned

assisted living business lessons assisted living investing assisted living occupancy assisted living staffing mental health assisted living operating out of state ral business residential assisted living sell assisted living facility Aug 29, 2025

Selling an assisted living facility is a big decision—and one that comes with a lot of lessons. If you're thinking about getting into residential assisted living (RAL), or already own a facility and wonder what it's like to exit, this post will give you an inside look.

I'm Brandon Gustafson from Assisted Living Investing, and in this post, I'm breaking down:

Why I sold my Colorado facility
The biggest lessons I learned from the journey
And what I’d do differently (so you can skip the hard stuff)

Let’s jump in. 🚀

Check out this video, too:

Why I Got Into Assisted Living in the First Place

Back in 2019, I was reading Rich Dad Poor Dad and realized I needed to figure out a better way to build financial freedom. That moment led me to explore real estate investing, and eventually I discovered assisted living.

With a healthcare background and a Master’s in Healthcare Administration, assisted living felt like the perfect blend of real estate and mission-driven work.

At first, I thought the only way into assisted living was to convert a single-family home. But then I learned you could buy an existing facility—and that changed everything.

By September 2020, I owned my first facility in Colorado.

What It Was Like Operating Out of State

I live in Utah and the facility was in Colorado Springs. Which meant a lot of long drives or flights to visit the facility. While operating out of state had challenges, it pushed me to delegate, trust others, and stop micromanaging.

This facility was focused on mental health. We served residents with conditions like bipolar disorder and schizophrenia. This was a rewarding population to work with, and over time, I developed a deep appreciation for serving this population.

The Good: Grants, Growth, and Giving Back

One of the biggest wins was securing $1.2 million in grant funding.

My past nonprofit experience gave me insight into how to find and obtain large grants, but I had never applied for one myself until I ran this facility. Learning to find and manage grants was challenging, but incredibly valuable - it allowed us to improve our technology at the facility and make large renovations in to the home.

Another win was growing as a business owner—improving how I delegated, strengthening relationships, and sharpening my ability to underwrite and plan.

The Hard Stuff No One Talks About

Assisted living is hard—especially financially.

Here are some of the challenges I faced:

Staffing – High turnover, burnout, and stress for facility administrators was one of the hardest parts.
Facility limitations – The building was old, built in the 1890s, and had four stories. This made admissions tough because residents needed to handle stairs if we were going to have them in the house; you can have a facility with stairs, but you want to be aware of the limitations.
Low census – When occupancy dips, revenue drops fast. It’s even riskier with smaller homes. Having just one or two open beds can put you in the red.

Planning for these situations from the beginning in your underwriting is critical to your survival in this business.

What I’d Do Differently (So You Don’t Have To Learn the Hard Way)

Here are the biggest lessons I learned from selling my first assisted living facility:

🧠 1. Be Conservative With Your Underwriting

Don’t assume full occupancy. Test different scenarios, including low census months.

💰 2. Build a Contingency Fund

Always have cash reserves for slow seasons, unexpected repairs, or sudden vacancies.

🤝 3. Build Local Relationships

Referral sources are one of the best ways to fill beds at your facility.

👥 4. Hire Slowly, Fire Quickly

Find the right fit for leadership roles. And if it’s not working, don’t delay the tough decisions.

Is It Really Profitable?

Yes—but only if you manage it right.

When occupancy is high, assisted living can cash flow extremely well. But if you're not prepared for low census periods, expenses can pile up fast.

This is where it can really benefit you to have multiple facilities. Having more beds and more homes smooths out the financial bumps. With more income streams, having one strong facility can support another during a rough patch.

Final Thoughts: Was It Worth It?

Absolutely.

This journey has been one of the most challenging and rewarding experiences of my life. I’ve grown as an entrepreneur, learned from my mistakes, and built something that helped real people.

Assisted living is not easy—but it is worth it.

If you’re serious about doing this, take your time, build a strong foundation, and know what you’re getting into. And if you need help—I’m here for you.

✅ Want to Launch Your Own Assisted Living Business?

Step 1: Download the Business Plan Checklist — it’s the best first step for building a strong foundation.

Step 2: Join the Assisted Living Investing Mastermind — a step-by-step program with coaching and support to help you launch in the next 12 months.

Download Your FREE Calculator

Send Me My Calculator

Stay connected with news and updates!

Join our mailing list to receive the latest news and updates from our team.
Don't worry, your information will not be shared.

We hate SPAM. We will never sell your information, for any reason.