Developing an assisted living home requires careful coordination of licensing, staffing, and operations in addition to the real estate component.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

Developing an assisted living home requires careful coordination of licensing, staffing, and operations in addition to the real estate component.

If it does, the commercial space becomes additional upside rather than a risk that makes the deal harder to finance.

I'd also be eager to verify if you need additional insurance and what insurance requirements the LLC needs to have. 3 years is a great period but, as you may have already requested, a big deposit up front seems key.

But here's the trap: every 25 basis points of additional rate drops your DSCR by approximately 0.02.

Currently it’s 340k but needs 160-180k of repair(estimate given by HUD consultant) Will probably need 50k to build out the attic in addition so I can duplex it up. 

In the case of the insurance, we are also checking to see that our company name is listed on the policy with the proper address as Additional Interest. 

We were told that, in addition to being a convenience, it would greatly increase property value and attract tenants.

There are still funds remaining in the rehab budget pool, but because of the draw structure I’m currently stuck waiting on reimbursements while additional work still needs to continue.