Buy an Assisted Living Facility in Indianapolis, IN

The Indianapolis Market

Indianapolis has an aging population and a growing demand for senior care. Marion County's healthcare sector is one of the largest employers in the region, and the broader metro has seen consistent growth in senior housing occupancy over the past several years.

With 54 active listings nationally at comparable deal sizes, there is real deal flow here. Prices range from $150K for small residential-style homes to $25M for multi-facility operators. Most SBA-viable deals sit in the $500K to $3M range.

Deal Economics

The median asking price for an assisted living facility in Indianapolis is $1.5M. Median cash flow runs approximately $339K, implying a 3.7x multiple. That sits inside the SBA sweet spot of 3x to 5x.

A sample deal at $1.5M asking price structures roughly like this:

• Asking price: $1,500,000
• Annual cash flow: $339,000
• SBA loan (85%): $1,275,000
• Seller note on full standby (5%): $75,000
• Buyer cash (5%): $75,000
• Annual debt service at 10.5% over 10 years: ~$214,000
• DSCR: approximately 1.58x

That 1.58x clears our 1.5x floor, though it leaves little cushion. A deal at this price requires clean financials and stable occupancy. If cash flow comes in even 10% below projection, you are below the floor.

These are rough estimates. Actual terms depend on individual qualification and lender.

A note on SDE: Assisted living listings frequently advertise Seller Discretionary Earnings, which include the owner's salary and personal add-backs. Real cash flow after a replacement manager is typically 15% to 40% lower than the advertised SDE figure. Underwrite to the adjusted number.

What to Look For

Assisted living facilities have a different due diligence profile than most SBA acquisition targets.

Occupancy rate is the first number to pull. A facility running below 75% occupancy is either underperforming or operating in a weak market. Either way, it requires explanation before you underwrite it.

Staffing is the second pressure point. Caregiver turnover in Indiana runs high across the sector. Review at least 12 months of payroll records and understand the cost structure if a key administrator or director of nursing leaves.

State licensing is non-negotiable. Indiana's Division of Long-Term Care licenses residential facilities, and any deficiency citations or pending violations transfer with ownership. Pull the inspection history from the Indiana State Department of Health before signing anything.

Payer mix also matters. A facility heavily dependent on Medicaid reimbursement has a different risk profile than one serving private-pay residents. Private-pay margins are higher and more stable. Medicaid rates are set by the state and do not move with inflation.

SBA Financing for Assisted Living

SBA 7(a) can finance assisted living acquisitions. The standard structure: 10% equity injection, structured as 5% buyer cash ($75K on a $1.5M deal) plus a 5% seller note on full standby acting as equity. The remaining 90% splits between an SBA loan and seller financing.

Full standby seller notes carry 0% interest with no payments due during the SBA loan term. Regalis Capital's deal team achieves this structure on over 90% of closed deals.

One structural note specific to assisted living: SBA lenders will scrutinize the licensing continuity plan. You need a clear path to transfer the Indiana operating license before the lender will fund. Factor this into your timeline. A typical assisted living acquisition takes 90 to 120 days to close, longer if licensing requires state review.

Frequently Asked Questions

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

The median asking price is $1.5M, with a range from $150K for small residential care homes to $25M for larger multi-facility operations. Most SBA-eligible deals fall between $500K and $3M, where debt service coverage ratios are most workable at current interest rates.

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

Yes. SBA 7(a) loans are commonly used for assisted living acquisitions. The equity injection requirement is 10% of the acquisition price, typically structured as 5% buyer cash and 5% seller note on full standby. Indiana facilities must show a clear licensing transfer plan before most lenders will commit to funding.

What cash flow should I expect from an Indianapolis assisted living facility?

Median cash flow is approximately $339K based on current listing data. That figure is often stated as SDE, which includes the owner's salary and personal expenses. After adjusting for a replacement manager, real cash flow is typically 15% to 40% lower. Underwrite to the adjusted number, not the advertised one.

What is a good occupancy rate for an assisted living facility acquisition?

Most underwriters want to see at least 80% occupancy at stabilization. A facility below 75% at the time of sale requires a clear explanation and ideally a near-term path to improvement. Occupancy below 70% makes debt service coverage difficult to achieve at typical acquisition multiples.

How long does it take to close on an assisted living facility in Indiana?

Plan for 90 to 120 days from signed letter of intent to close. Indiana state licensing review can add time if the transfer requires a new application rather than a simple change of ownership. Engaging a healthcare attorney early in the process reduces the risk of last-minute delays.

Considering an Assisted Living Acquisition in Indianapolis?

Regalis Capital's deal team reviews 120 to 150 deals per week and works directly with buyers on sourcing, underwriting, and financing assisted living acquisitions across Indiana.

If you are evaluating a specific facility or want to understand what a deal would look like at current SBA rates, start with a free deal assessment at regaliscapital.com.