Making your properties into a daycare

[Jai Jackson]

I'm 22 years old and was talking with a real-estate investor from my Church, and he has made all of his properties into daycares and says that it's very profitable and scalable. Can anyone speak to this, and other business like this?

[Davendra Bhagwandin]

Hey Jay
While I can't personally speak to the profitability and scalability of this model, my bit of advice comes from resolving violations for investors who have had these types of properties in their portfolio/ have had tenants who operated those types of businesses in their properties.

Be aware and hypervigilant of keeping the building up to code for it's specific usage especially with something like this. In NYC it is not uncommon to find out that someone "cut corners" and has been getting away with it while profiting. The issue arises once something finally does go wrong and the whole situation unravels. Violations tend to follow the property/ Landlord not the tenant. 

Source: I once took on an expediting job for an Landlord who rented their property via a master lease to someone who was working with a city agency to help at risk individuals. Even though the tenant had created the violating conditions the landlord was still issued violations and a vacate order that made it so the property could not be occupied until costly repairs (permits, plans etc) had been completed.