I've been exploring adult foster homes (AFH) as an investment in Washington state and would like thoughts and input on a sale I'm considering. This purchase would be my first and I'm only starting to learn about and understanding the world of AFHs.
Locations: Battle Ground, WA
Home: 2800 sq ft, 7 residents/rooms; staff already in place that includes caregivers, CNAs, and manager
Sale price: $1.1 mill
Estimated net income based on P&L: $80-90K/yr
Loan structure: commercial loan for ~80%, personal and hard money loan for 20%
- what do you think about the offer in general?
- do people have experience with AFH and could provide insight?