This boarding house started with a clerical order in late 70's and thrives today housing and feeding those in need of living quarters and scheduled skilled and non-skilled care services provided by third parties on site.
As the CDAC waiver landlord and service provider meals, laundry and cleaning are also provided by the operator. Tenants include private pay and Iowa Medicaid. The facility is located in Eastern Iowa and has been continually maintained and upgraded by current owner.
Facilities: Two story with basement, 12 unit, boarding house in urban setting, adjacent to major grocery store, convenient stores, entertainment and dining. Built in 1970's as a nursing home for a clerical order, the building has been upgraded with new roof, AC, new electrical, new drainage, new flooring, new wheel-chair proof walls and corners, new bathrooms, new kitchen, laundry and living room fixtures. Each bedroom unit has a 1/2 bath. There's a manager's quarters with full bath, and room for two tenants. Two additional full bath's one on each floor. Shared common spaces for meal prep, dining and living room. Backyard has vegetable garden setup.
Competition: Current owner has requests for more of this same type of housing for those in need, with funding from assistance programs. Higher end assisted living facilities start at $3.5K, and there is a growing market for those in need with resources less than $3K monthly. Current owner maintains referral network and waiting list.
Growth & Expansion: Seller took over and median rent was approximately $1500 per month. That average has been raised to $2000/month, per resident. With recent onsite upgrades, and demand being higher with new Medicaid programs,one could grow this average to $2,500 per month. With a fully occupied facility, the business generates $70,000 in pre-tax profits annually, and consistently. A new owner can increase their discretionary earnings by replacing one or more of the two very capable and successful full-time onsite managers.
Support & Training: Will assist new owner in navigating CDAC waiver licensing, reporting and invoicing, as well as introductions to service providers and referral network. Current staff includes manager and four full time caregiver CNA's, and one PRN to fill in when needed. Current owner involved part-time on day to day. Sale includes fully developed policy and procedure manual.
Reason for Selling: Focus on other investment opportunities.
|2018 Gross Revenue:||$231,000|
|2018 Pre-Tax Profits:||$76,000|