How to Make $30,000/Month Per Property with Assisted Living Rentals

From House Hacking to High-Revenue Rentals

• 💡 James Davis started his real estate journey in 2019 with a house hack, living in the basement of a property while renting out the upstairs.
• 🛠️ He personally renovated the basement, including adding a kitchen and bathroom, living without basic amenities for three months to save costs.
• 📈 This initial hustle allowed him to refinance into a conventional loan with a favorable 3.85% interest rate, covering his mortgage with rental income.

Creative Real Estate Strategies

• 🤝 James utilized a sub-two deal for his second property, taking over the seller's existing mortgage with a low 3.5% interest rate.
• 💰 This strategy involved back-paying missed mortgage payments, giving the seller $5,000, and covering all closing costs, offering a creative solution for distressed sellers.
• 🏦 He emphasized the importance of working with experienced title companies and mortgage lenders to navigate the complexities of sub-two transactions.

The Assisted Living Model

• 🏠 James pivoted to assisted living facilities for individuals with disabilities, inspired by his brother's experience in disability services.
• 🏥 The licensing process for these facilities is rigorous, involving extensive paperwork and inspections, taking about eight months to complete.
• 💰 A single bedroom in an assisted living property can generate up to $15,000 per month in revenue, significantly higher than traditional rentals.

Scaling and Profitability

• 🚀 James and his brother now operate 13 residents across four properties, generating approximately $83,000 in total monthly revenue.
• 📈 The business is on track to gross $1 million to $1.1 million in revenue this year, with an estimated net profit of around 20% ($200,000).
• ⚖️ While assisted living offers high revenue, it also involves significant expenses, including high insurance costs and caregiving labor, resulting in an estimated $10,000-$11,000 in monthly expenses per $15,000 client.

Advice for Aspiring Investors

• ❤️ This strategy is ideal for individuals who care about people and want to provide a valuable service while achieving financial freedom.
• 💼 It requires an entrepreneurial spirit, a willingness to hustle, and the ability to manage a more complex business model than traditional rentals.
• 🎯 James aims to balance his portfolio by acquiring more assisted living properties while also investing in stable, long-term rental real estate for lower maintenance.