Acquire Group Homes

Free tool

Group Home Deal Analyzer™

Enter the property economics and the operating costs. The tool shows you gross revenue, break-even occupancy, net operating income, revenue per bed and the maximum sustainable payment for the property — with the arithmetic visible at every step.

General education only. Not investment, tax, legal or accounting advice. Verify every assumption against the actual property, market and funding source.

Control point 6Economics & OperationsControl the numbers, then control the system that produces them.

Your inputs

Property & occupancy

Monthly operating costs

Monthly gross revenue

$4,590

5.1 of 6 positions occupied

Net operating income

$170

3.7% operating margin

Break-even occupancy

81.9%

4.9 of 6 positions must be filled

Revenue per bed

$765

Gross revenue ÷ legal capacity

Maximum sustainable property payment

$2,111

The most this house can pay for the property, leaving operating costs covered and a 10% cushion. Your actual payment is below.

Margin looks workable

At 85.0% occupancy the house produces $170 monthly, and it breaks even at 81.9%. That leaves room for an occupancy dip — but test it. Set occupancy to 70% and look again.

How this was calculated

Occupied positions (6 × 85%)
5.1
Gross revenue
5.1 × $900 = $4,590
Operating expenses
$2,020
Property payment
$2,400
Break-even ($4,420 ÷ $900)
4.9 positions
Net operating income
$4,590$4,420 = $170

What this tool does not know

  • It does not know whether the housing use is permitted at the property.
  • It does not know whether the resident payment is realistic, funded or sustainable in your market.
  • It does not know your actual insurance, tax or capital expenditure obligations.
  • It does not know what happens when occupancy drops to 60% — try it and see.

Next step

Now find out whether you can actually control the property.

The numbers working is necessary, not sufficient. The next question is which acquisition structure fits the seller in front of you.

Or test your model with the Model Finder™

Important disclaimer

Acquire Group Homes™ provides education, consulting, business systems and real-estate strategy. It does not provide legal advice, medical advice, clinical treatment, licensing determinations, tax advice or Medicaid eligibility determinations. Requirements vary by property, population, services, city, county and state — nothing on this page states or implies that any model is automatically legal in any jurisdiction.

Operators must verify zoning, licensing, occupancy, building/fire code, fair-housing obligations, insurance, resident-rights requirements and other applicable laws with qualified professionals before acquiring or operating a property. We do not promise "no license required," guaranteed Medicaid payment, guaranteed government contracts, guaranteed occupancy, "eviction-proof" agreements, or that any structure avoids zoning or lender requirements.

Full disclaimers

Before you leave the page

Save your analysis — and find out whether the deal survives real underwriting.

You have the break-even occupancy and the maximum sustainable housing payment. What the numbers cannot tell you is whether the structure you are about to sign actually holds up. Send us the property and we will tell you which of the twelve control structures fit it.