Episode 148 | Can A 3-Bed Care Home Be Profitable?
This episode explores the feasibility and profitability of running very small assisted living homes with two or three beds. Brandon explains that while small homes can be profitable, they come with unique challenges and trade-offs, especially if operating under a live-in caregiver model. Key advantages include reduced staffing costs, smarter cost management due to close proximity and control, potential tax benefits, lower insurance costs, and more accessible funding options such as FHA or VA loans due to owner-occupancy. However, there are significant downsides: limited income potential, the risk of severe income loss if residents leave, heavy lifestyle demands on live-in caregivers, and legal complexities that require proper entity structuring, leases, and insurance compliance.
01:04 Live-in caregiver model can significantly reduce staffing costs and increase profitability.
02:30 Smaller homes allow smarter cost management and better control over expenses like groceries and supplies.
04:00 Owner-occupied smaller homes may qualify for lower down payment loans like FHA or VA funding.
05:45 Unlicensed small homes save licensing costs but still require compliance and business licenses.
07:00 Legal protection via LLC formation and proper lease agreements is critical to limit liability.
10:07 Two or three bed homes have limited income potential and high financial risk if residents leave.
13:00 Live-in caregiving is demanding and can lead to significant lifestyle sacrifices over time.
Resources Mentioned:
Visit our website, AssistedLivingInvesting.net, for additional resources, including our year-long mastermind program and free underwriting calculator.
Get your free business plan checklist today: https://urlgeni.us/alibpc
If you’re passionate about serving those who served us, this video will help you get started the right way. 👉 Join the upcoming Roadmap Challenge at roadmapchallenge.com 📘 Or get your step-by-step guide in The Profitable Assisted Living Facility at thealibook.com
Learn about the Assisted Living Investing Mastermind: assistedlivinginvesting.net/mastermind
Apply for the Mastermind today: alimastermind.com/application
Join the Bussiness Foundation Basics Workshop: Assisted Living Business Foundation Basics
Learn the five steps to help you start an assisted living business: https://youtube.com/live/dRVCa80SOyM
Get the 12 Week Year Book: https://amzn.to/4bAOpQf
Marketing Made Simple by Donald Miller: https://amzn.to/3ECoNY5
Who Not How by Benjamin Hardy : https://bit.ly/whonothowbooklink
Courses:
- Do you need guidance on your journey to launching your assisted living business: https://urlgeni.us/aliala
- Do you need help building your business plan: https://urlgeni.us/alibpg
FREE Resources:
- Business Plan Checklist: https://urlgeni.us/alibpc
- Calculator: https://urlgeni.us/alicalc
- Lease Agreement Template: https://urlgeni.us/alila
- ProfitPath Analysis Tool: https://urlgeni.us/aliprofitpath
- Grant Writing Template: https://urlgeni.us/aligrant
Need help with your payroll? Get Gusto: https://gusto.com/i/brandon9590
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