Adult foster home - deal analysis

[Robert Hudon]

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?

- helpful resources

- general thoughts

Much appreciated!