Buy an Assisted Living Facility in Dallas, TX

Dallas Assisted Living: Why the Numbers Work

Dallas has one of the fastest-growing senior populations in Texas. Collin and Denton counties alone added tens of thousands of residents aged 65 and older over the last decade, and the city proper is not far behind.

That demographic pressure creates durable demand for assisted living beds. Unlike most small businesses, a well-run assisted living facility does not lose customers to an Amazon delivery or a new competitor opening across the street. Residents sign in and typically stay for years.

The Texas Health and Human Services Commission licenses and inspects these facilities, which creates a regulatory moat. New supply is constrained by licensing timelines and real estate costs. That makes existing, licensed facilities worth paying for.

Deal Economics for Dallas Assisted Living Acquisitions

A 2.0x multiple is genuinely attractive. Most SBA-eligible businesses trade between 3x and 5x cash flow. Seeing real facilities change hands below 2x means either the seller is motivated, the operation has fixable problems, or the cash flow is not fully verified. All three scenarios are worth investigating, not avoiding.

Here is a rough deal example at the median:

• Asking price: $595,000
• Annual cash flow: $293,582
• Implied multiple: 2.0x
• SBA loan (80%): $476,000
• Seller note (15%, full standby at 0%): $89,250
• Buyer cash equity injection (5%): $29,750
• Approximate annual debt service at current SBA rates (roughly 10.5%, 10-year term): $78,000
• Estimated DSCR: 3.8x

A 3.8x DSCR is strong. That gives you meaningful buffer for vacancies, unexpected repairs, or a slow fill period after acquisition. These are rough estimates based on market data. Actual terms depend on individual qualification and lender.

Note: the cash flow figures above are cash flow as reported. If you are working from SDE (seller discretionary earnings) figures, apply a 15% to 50% discount to approximate what the business actually generates for a replacement operator.

What to Look for Before You Buy

Assisted living is not just a cash flow business. It is a licensed care business. The difference matters at closing and every day after.

Start with the license. Texas HHSC licenses assisted living facilities as either Type A (ambulatory residents) or Type B (non-ambulatory or night staff required). Type B facilities carry higher regulatory burden and staffing costs. Confirm which license is in place and whether it transfers with the sale.

Check the inspection history. HHSC makes inspection reports public. A facility with repeated deficiency citations, especially around medication management or emergency procedures, is a liability, not a deal. One or two minor deficiencies over a five-year span is normal. A pattern is not.

Verify occupancy. Aim for facilities running above 80% occupancy for at least 12 consecutive months. Trailing 12-month revenue should match bed count times average monthly rate times occupancy percentage. If the math does not reconcile, the revenue is soft.

Confirm staffing structure. Assisted living facilities live and die on caregivers. Ask for payroll records going back 24 months. High caregiver turnover is a warning sign. Understand whether any key staff have indicated they will leave at ownership change.

Review the resident agreements. Long-term, locked-in agreements at market rates are a positive. Month-to-month agreements across the board leave you exposed to rapid occupancy drops post-close.

SBA Financing for Dallas Assisted Living

SBA 7(a) loans are a viable structure for assisted living acquisitions when the facility is owner-operated or transitioning to an owner-operator model. The standard structure Regalis works toward:

• 80% SBA 7(a) loan
• 15% seller note, full standby at 0% interest during the SBA loan term (achieved on 90% or more of our deals)
• 5% buyer cash equity injection

The full standby seller note is the key piece. It counts as equity toward the SBA's 10% injection requirement, which means a buyer bringing $29,750 cash on a $595,000 deal can close without additional collateral if the business qualifies.

The catch: SBA lenders will require the buyer to demonstrate relevant operational or management experience. Pure financial buyers with no healthcare or property management background will face more scrutiny. Expect the lender to require a qualified operator agreement or a transition period with the seller if your background is outside the care sector.

Frequently Asked Questions

How much does it cost to buy an assisted living facility in Dallas?

Asking prices in Texas range from $158,900 to $25,000,000, with a median of $595,000. Most SBA-eligible deals in Dallas fall between $400,000 and $2,000,000. Price depends heavily on bed count, license type, occupancy, and real estate ownership versus leasehold.

Can I use SBA financing to buy an assisted living facility in Texas?

Yes. SBA 7(a) loans cover assisted living facility acquisitions in Texas. The standard structure is 80% SBA loan, 15% seller note on full standby, and 5% buyer cash, totaling 10% equity injection. Lenders will evaluate the business's cash flow, the buyer's relevant experience, and license transferability.

What cash flow should I expect from a Dallas assisted living facility?

Median cash flow for assisted living facilities in Texas is $293,582 based on current listings. That figure represents owner earnings as reported. Actual post-acquisition cash flow depends on staffing costs, occupancy stability, and whether the previous owner was paying themselves a market-rate salary.

What is a good occupancy rate for an assisted living facility I'm considering buying?

Target 80% or higher for at least 12 consecutive months. Occupancy below 75% indicates either a pricing problem, a reputation issue, or a staffing problem, all of which take time and money to fix. Verify occupancy with raw intake and discharge records, not just a summary the seller provides.

How long does it take to close an assisted living facility acquisition in Texas?

A licensed assisted living facility acquisition typically takes 90 to 150 days from signed LOI to close. The additional time compared to a standard SBA deal comes from license transfer coordination with Texas HHSC and lender underwriting of the care business. Start the licensing conversation with HHSC early, not after the SBA approval.

Ready to Run the Numbers on a Dallas Assisted Living Deal?

Assisted living is one of the more defensible acquisition targets in the Dallas market, but only when the license, the occupancy, and the staffing structure hold up under scrutiny. Most deals that look attractive on paper have at least one of those three issues.

Regalis Capital's deal team reviews 120 to 150 acquisition opportunities per week and can help you assess whether a specific facility clears the bar for SBA financing and a viable first-year return.

If you are seriously evaluating an assisted living facility in Dallas, start with a deal assessment here.