If you are considering selling a home to pay for assisted living, you are likely facing one of the most stressful financial moments a family can experience.
In Southern California, the average cost of an Assisted Living or “Board and Care” facility now ranges from $4,500 to over $8,000 per month, according to the Genworth Cost of Care Survey. For specialized memory care or skilled nursing, those numbers can easily double.
The hard reality? Medicare usually does not cover these costs. Most families must pay out-of-pocket (“private pay”).
We recently worked with a family in this exact situation. They were asset-rich but cash-poor, owning a second property in Lakewood, CA, but struggling with the costs of selling a home to pay for assisted living expenses in San Diego.
This guide explains how they solved that problem, and helps you decide if selling a home to pay for assisted living is the right move for your family.
The “Cash Trap”: When Assets Don’t Pay the Bills
Many California families own real estate but lack liquid cash. You might have a rental property, a vacant family home, or a second residence. While these are valuable on paper, they don’t help when a care facility demands a $7,000 check on the first of the month.
The Hidden Costs of Keeping a Second Property
If you have a loved one moving into care, holding onto a vacant or rental property can actually hurt you:
- Medi-Cal Eligibility: Generally, your primary home is exempt from asset limits if you intend to return. However, a second property is often treated as a countable asset under California Medi-Cal asset and estate recovery rules, which may require it to be sold and the funds spent down on care before benefits apply.
- Important Note: We are real estate investors, not elder law attorneys or financial planners. Medi-Cal eligibility rules are complex and subject to change. Please consult with a qualified professional to understand how selling a property may impact your specific benefits.
- Maintenance & Distance: As our recent client found out, managing a property from a distance (e.g., driving from San Diego to Lakewood) is impossible when you are spending every day at the hospital.
- Liquidity: You cannot pay medical bills with stucco and drywall. You need cash.
Case Study: The “Lakewood to San Diego” Dilemma
We recently helped a seller let’s call him “Gary” who faced this exact crisis.
The Situation: Gary lived in San Diego. His wife fell suddenly ill and required immediate placement in a Board and Care home (a residential care facility). The facility cost thousands per month, and the bills were draining their retirement savings fast.
The Asset: Gary owned a second home on Camerino St in Lakewood, near the Lakewood Mall. It was vacant, holding only old furniture and memories.
The Problem: Gary was overwhelmed.
- He couldn’t leave his wife’s side to manage repairs or host open houses in Lakewood.
- The house was outdated and full of personal items.
- He didn’t use email, making a traditional “DocuSign” listing impossible.
- He needed the money now to secure his wife’s continued care.
3 Options When You Need Cash for Care.
This infographic outlines the three most common ways families use a second home to cover assisted living and medical care costs.
If you are in Gary’s shoes, you generally have three options. Here is how to choose the right one:
Option 1: Rent the Property Out
- Pros: Monthly income stream.
- Cons: Being a landlord is a job. If the roof leaks or a tenant stops paying, you have a new headache on top of your medical stress. Plus, the monthly rent might not cover the full cost of a care facility.
- Best for: Families with plenty of time and cash reserves who want to keep the asset long-term.
Option 2: Traditional Real Estate Listing
- Pros: You might get the highest possible market price.
- Cons: It takes time. A standard sale takes 60-90 days. You will likely need to clear out the house, paint, and make repairs to satisfy buyers and inspectors.
- Best for: Families who are not in a rush and have a turnkey, modern house ready to show.
Option 3: Direct Cash Sale (What Gary Chose)
- Pros: Speed and convenience. You sell the house “as-is,” meaning no repairs and no cleaning.
- Cons: You may sell for a slight discount in exchange for speed and convenience.
- Best for: Families facing urgent medical bills who cannot manage the logistics of a renovation or open house.
How We Solved It for Gary
Gary chose Option 3 because his priority was his wife, not maximizing a real estate transaction over six months.
Because we are a local, family-run business (John & Yvette Medina), we could offer a level of service a big tech company couldn’t:
- We bridged the digital gap: Gary didn’t have email. Our specialist, Ricky, drove personally to San Diego to handle the paperwork. Gary never had to leave his wife to deal with bureaucracy.
- We took the “stuff”: The Lakewood house was full of furniture. We told Gary to take what he wanted and leave the rest. We handled the cleanout completely.
- We closed in 9 days: Gary had the funds in his account less than two weeks after calling us.
The Takeaway: Prioritize Your Peace of Mind
If you are drowning in medical bills while sitting on a vacant property in Los Angeles, Riverside, San Bernardino, or Orange County, you have options.
You do not have to become a landlord or a project manager while you are trying to be a caregiver. Liquidating a second home is often the smartest way to ensure your loved one gets the best care possible without bankrupting your liquid savings.
If you are thinking about selling a home to pay for assisted living and need a fast, compassionate solution, we are here to help. Call (310) 928-9688 or visit johnmedinabuyshouses.com for a confidential conversation. No pressure. Just real options.
