Selling our Care Home business and leasing it

[Rodney Marcantel]

We are selling our current 4/3 (converted from a 4/2) senior care home business for $20,000 (invested $19,000 in updates to care home status and new 3rd handicap bathroom). I'm just curious if this is a good deal to lease the property to a care home management company. We purchased the home all cash for $211,200 for a 2215 sq.ft. home.

Business being purchased for $20,000 plus 5% annual interest paid monthly over 2 years and leasing the home for $2,000 monthly. The $20,000 paid monthly comes out to $24,000 at the end of 2 years and our expenses on the home (landscape, taxes, insurance, home warranty) is $400 monthly leaving a monthly profit of $1,600. That equates to an ROI of 9.1% annually on the $211,200 cash put in to buy the house.

From a care home use perspective, this seems like a good rental deal as to rent as single family home would bring in about $1,700 monthly (minus the $400 mentioned above) is only $1,300 monthly income or an ROI of 7.4% annually on $211,200.

Are my numbers right?
Is there something I'm missing?
Is this a good deal to lease at $2,000 monthly?
My guess is yes but would love feedback. Thanks so much.