Higher ROI with Senior Housing, According to BiggerPockets
November 12, 2023
As America ages, one real estate sector is emerging as both a social necessity and huge
investment opportunity. With millions of baby boomers entering retirement age, the industry is poised for huge long-term growth. In one podcast episode from BiggerPockets, Antoinette Munro said she was able to retired early after switching from vacation homes and short term rentals to assisted living investments (see full episode here:
https://www.youtube.com/watch?v=5tqSY3Av0Ug).
According to Lisa McCracken of the National Investment Center for Seniors Housing & Care (NIC), “People put off moving in for an extended period during the pandemic. Now those needs have been amplified because of that delay.” The result? Occupancy is up, rents are high, and investors are taking notice.
In late 2023, the average occupancy rate for senior housing in the 31 largest U.S. markets was 85.1%, with monthly rents ranging from $4,100 for independent living to over $6,400 for more intensive care. And it’s not just the rent that brings in revenue—investors can also earn money from medical services such as medication management, injections, or blood pressure checks. One industry survey estimates that these extra services can bring in 20% more income, making this a uniquely profitable asset class.
Demographic trends are only making the opportunity more compelling. Starting in 2030, every member of the baby boomer generation will be over 65, and by 2060, nearly one in four Americans will be seniors. The population over 85 is expected to triple, and centenarians will become far more common. This shift means growing demand for healthcare, caregiving, and senior housing options across the country.
While technological advancements like telehealth and emergency alert systems have helped some seniors stay at home longer, many will still require full-time care. Today, around 850,000 Americans live in assisted living facilities. That number will only increase, and so will the need for more properties to meet it.
There are several ways to invest in senior housing, depending on your capital, risk tolerance, and how hands-on you want to be.
1. Buy and operate a senior care residence.
This route offers the highest potential cash flow but also requires the most work. Assisted living homes can earn significant income. For example, a 10-bedroom ADA-compliant home in an upscale suburb, with residents paying around $6,000 a month, could generate $12,000–$18,000 in monthly cash flow. But owning and operating one means dealing with strict regulations, licensing, staffing, and marketing.
2. Take a passive investment role.
You can buy the real estate and lease it to an experienced operator or partner with them. This allows you to benefit from rental income without running the business. Many investors even live out of state and rely on local managers to handle operations. You can close on assisted living facilities quickly and negotiate a more competitive price for the properties if you use speciality and non-traditional
lenders, like with our experienced team at
Fast Loans. The faster you can acquire the property, the sooner you can lease it out, and then take your time refinancing it into a traditional loan.
3. Join a private fund or syndication.
Pooling your money with other investors in a
private fund gives you exposure to senior housing without the hassle of direct ownership. While this is less risky than going solo, it usually requires you to be an accredited investor and offers less control over the investment.
With a growing population of aging Americans and rising demand for care, senior housing stands out as a rare opportunity where doing good and doing well can go hand in hand. Whether you’re looking for passive income or ready to dive in headfirst, now is the time to consider senior housing as part of your investment strategy. Our team at
Fast Loans is here to help you reach your investment goals faster, by providing funding in just days instead of weeks or months, all with less paperwork and less headache. Give us a call today to book your free consultation.
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Flipping residential assisted living properties has emerged as a lucrative niche in real estate investing, offering both financial rewards and the opportunity to provide essential services to the aging population. Brett Chotkevys says flipping houses is “fading” and that assisted living is the new gold mine. In his podcast he discusses how he went from flipping hundreds of houses to instead flipping luxury assisted living facilities. “If you’re still grinding it out with house flips, wholesaling, or chasing multifamily deals in 2025… it might be time to pivot. Brett reveals how these high-end, 10,000+ sq ft residential care homes are generating predictable income, high margins, and long-term equity, while also creating a real impact in the community. Forget six beds and headaches, this model is built for scale, sustainability, and legacy.” To learn more about Brett Chotkevys visit here: https://www.youtube.com/@Brettchotkevys1 Other case studies involve investors who have transformed single-family homes into assisted living facilities by converting a standard home into a facility that accommodates 6-10 residents requiring assisted living services. Investors have reported substantial monthly cash flows. For instance, a property that might typically rent for $1,200 per month as a single-family home could generate significantly higher income such as $6000-$10,000 when operated as an assisted living facility, due to the higher per-room rental rates and additional services provided. These case studies illustrate the potential profitability of investing in assisted living properties. Whether you’re planning to convert your rental property into a memory care mansion, looking to make a purpose-driven impact on the community, or planning for early retirement, senior care and assisted living home opportunities are a high yield vehicle to achieving your dream. The time to pivot into high yield, lucrative, assisted living homes is now. Don’t wait until 2026 when the opportunity to capitalize on this wave has become saturated. Learn how to add assisted living homes into your portfolio now. Our experienced team at Fast Loans can help by offering the hard money loan or private loan solution you need to convert single family or even multifamily into an assisted living investment property. Call us today to book a free consultation.
Many people wonder if it’s too late to get into the assisted living business . The quick answer: it’s not too late, not even close. In fact, 2025 may be one of the best times to enter this profitable space. Demand for senior care is climbing steadily, and there are still plenty of opportunities to build a successful, profitable business, even on a small scale. Let’s begin with some numbers to get a clear picture of what’s possible. Gross income is the total revenue your facility brings in before subtracting expenses. A small ten-bed assisted living facility , even one that accepts Medicaid residents, can generate about $40,000 in gross income per month. That might come as a surprise, especially since Medicaid is often viewed as a lower-paying option. But the numbers tell a different story. Take this example. A Medicaid resident might bring in $100 per day in reimbursement. Over the course of a month, that’s $3,000. Add in around $800 per month in Social Security benefits and potentially an additional $200 in resident-paid share of costs, and you’re looking at approximately $4,000 per resident per month. Multiply that by 10 residents, and you arrive at $40,000 in monthly gross income. That’s a solid foundation, and it’s not at all unrealistic. Of course, the key to profitability is understanding your expenses. Net income is what remains after covering all operating costs. In the assisted living business, your major expenses typically include staffing, food, insurance, and debt servicing. Staffing is usually the largest single cost. After all, hiring and retaining qualified, compassionate caregivers is critical to running a facility that families trust. Food is another ongoing expense, and it can be estimated using the per resident per day (PRPD) method. For instance, with 10 residents and a daily food budget of $8 per resident, you can expect to spend about $80 per day, which adds up to around $3,200 per month. Insurance is another necessity. You’ll need liability insurance and other forms of coverage to protect your business and meet state requirements. Then there’s debt servicing— loan payments on any property you buy or improvements you make. These costs can vary widely depending on your location, lending terms, and facility type. So, what does that mean for your bottom line? In a smaller facility that’s well-managed, profit margins of 75 to 80 percent are not unheard of. If your gross income is $40,000 per month and your expenses are controlled, you could be looking at a net income of $10,000 or more monthly. That’s a strong return for a small business and one that provides a critical service to the community. The reality is that the market still has room for newcomers. The U.S. population is aging rapidly, and the need for quality care isn’t slowing down. In fact, small residential assisted living homes are becoming more popular with families who want a more personalized and home-like environment for their loved ones. There’s also growing recognition that Medicaid-focused models can work well when designed thoughtfully and operated efficiently. If the idea of running an assisted living facility appeals to you but you’re unsure where to start, Assisted Living Investing is here to help. From navigating licensing requirements to understanding the financials, we guide aspiring owners through the entire process. A great place to begin is with our free underwriting calculator, which helps you estimate income, expenses, and profit potential based on real-world scenarios. So no, it’s not too late to get started. If anything, now may be the ideal time to enter the industry. With high demand, scalable opportunities, and the right support, assisted living can be a personally rewarding and financially sound business in 2025 and beyond. Ready to start exploring private financing options to acquire your next assisted living facility with as little headache and paperwork as possible? Then call our team at Fast Loans today to get started. We offer free consultations to discuss your assisted living investing needs.
Forget crypto. Forget vacation rentals. The real money is where the baby boomers now turned senior residents are. Assisted living and senior care facilities is one of the most profitable and yet quietly booming business investment opportunities on the market today. Some economists now estimate that there will be an additional 27 million seniors needing assisted living by 2050. So if you’re a savvy real estate investor, private equity partner, or high-net-worth individual looking for a gold rush opportunity that pays in serious cash flow (and also make a positive impact), you might want to lean into assisted living facilities. Why Senior Housing is the New Luxury Real Estate By 2030, every Baby Boomer will be over 65. That’s more than 70 million people aging into a stage of life where they need more support — and they're willing (or their kids are willing) to pay a premium for it. Today’s assisted living facilities are more like boutique hotels with concierge amenities and executive nurses. Think wine nights, yoga, and chef-prepared meals — all with medical staff just a call button away. It’s a high demand, high margins, and recession-resistant industry. Here's How You Can Get In Early on the Gold Rush Investors are financing their way into existing cash-flow senior living facilities. But before you start browsing senior care properties like they’re luxury Airbnbs, let’s talk about the money side because no investment starts without smart capital. Here are the top assisted living financing options savvy investors are using: 1. Assisted Living SBA Loans: Government-Backed, Investor-Approved If you're willing to invest in the long haul, SBA 7(a) and 504 loans are a solid entry point. They offer low down payments, long repayment terms, and competitive interest rates. Perks: 10–25 year terms, low fixed rates Pro tip: Lenders love experience. Partner with an operator if you’re a pure investor. 2. Assisted Living Hard Money Loans: When You Need Speed, Not Red Tape Hard money private loans are for investors who move fast and think faster. Expect higher rates but way less paperwork — perfect if you're scooping up distressed properties to renovate into senior care goldmines. Or flipping an existing senior living property into a luxury assisted living facility, which you can later cash out or exit for higher multiple due to the value-add from the new upscale amenities. Perks: Fast funding, flexible underwriting Pro tip: Work with an experienced private money lending team, like our experts Fast Loans , to get fast funding with minimal paperwork and competitive rates. 3. Assisted Living Business Lines of Credit These are great if you already own a cash-flow positive facility and want to expand or upgrade, and you can provide the income and profit and loss documentation to finance with a traditional bank. It’s not a fast or flexible and private loans, but they often beat traditional business loans. Perks: Predictable payments, potential tax advantages Why Capitalize on This Once in a Lifetime Gold Rush Assisted living facilities can average 15% annual returns, with several exceeding 30% in luxury or high-demand markets. Plus, you’re building equity in the real estate that will likely appreciate in the long term. And you can defer taxes and leverage other tax advantages by utilizing a 1031 exchanges when selling the assisted living facilities. The baby boomer senior living gold rush will only happen once. We likely won’t see another wave of seniors entering the assisted living market again. Capitalize on this once in a lifetime opportunity. People will need increasingly more care as the wave of baby boomers turned seniors on the horizon. And investors who move early on a gold rush, land the biggest pots of gold. So book a free consultation with one of our experts, or request to see a list of active senior living facilities for sale that you can quickly acquire with an asset-based private loan. We’re here to help you capitalize on investments fast.