Established Assisted Living Facility, 30-Room Texas Suburban Community

Full Editorial Writeup

This is a 30-room residential assisted living facility located in a high-growth suburban submarket in Texas. The physical plant consists of two identical single-story buildings, a purpose-built configuration common in the residential care model that keeps construction and operating costs lower than institutional high-rise senior housing. The facility serves seniors who need daily support with activities of living but do not require full skilled-nursing care, a segment that continues to expand as the population ages.

The business reportedly generates $850,000 in annual cash flow, which is a strong number for a 30-bed operation and implies high occupancy, disciplined labor management, and healthy per-resident revenue. In residential assisted living, profitability is driven by occupancy rate, private-pay mix, staffing ratios, and rent or mortgage cost on the real estate. A facility throwing off this level of cash flow at this bed count is running efficiently.

The real estate appears to be included, which matters because it changes how a buyer should underwrite the deal. Part of the return here is operating income and part is control of a hard asset in an appreciating suburban Texas market. That combination gives a buyer both cash flow and a financeable, collateralized building, which supports SBA 7(a) or conventional real estate financing.