Assisted Living Facility - Posted by Diego79
Posted by Diego79 on December 07, 2003 at 21:19:21:
A seller calls me off one of my bandit signs today. She has a 2100 sq ft house with main rood frontage that she needs to sell. Thing is it’s been converted into an assisted living facility. It’s got 5 beds and she and one other person run the place. The other half of the place is her own residence.
She wants 210k for the place which is about what the place would retail for as a 2100 sq ft residential home in that area. She also came up with that number because that’s what she’s got in the house after converting into an assisted living facility (ASL).
She converted it 1 year ago and her husband got a job transfer they must take so they need to sell. The price includes all equipment and business contacts. She states it is a “turnkey” operation.
She and two other employees run the place. She is willing to train the new owner and stay on board until they get the licsencing req’d which can be done within a few months. Her 2nd in command is willing to take charge of the main day day managment (she states that she cannot purchase the home/business).
She states the gross income is 6600 per month with 5 beds. With her and her family moving out she states you could easily add 4 more beds and stay well within code. The net is 3600 after all mortgages/taxes/ins/wages.
Whew… now that I have that out of the way - what the HECK can I do with this. IF this place makes 3600 x 12 = 43,200 per year, based on what I know about income producing properties, the value would appear higher.
Also, she states that the houses in her area on that street are being
re-zoned light commercial for lawyers/cpa’s/dentists…
I have yet to verify everything she has told me 'cause as we know how sellers fib sometimes but still… I really don’t what all this info means to the layman, but I’m looking for someone have might have some idea about how to take advantage of this situation. I wouldn’t mind getting it under contract and flipping it to someone who knows what they’re doing.
If anyone has any ideas or contacts please let me know.
-Chris
Tampa rolldub79@yahoo.com