Assisted Living startup questions

[Matt Schaum]

I have an opportunity to purchase an already established assisted living facility in Baltimore, MD. I have no idea what is involved in the process. My goal is to create long term cash flow. The existing owner currently rents the building to an already established assisted caretaker. It is a 15 bed unit, but can sleep 16, with one being a live in facilitator. My goal is to mirror what the existing landlord is doing. He is going to provide me with financial history and performance records. My questions are as follows: Being the owner of the building, what type of special insurances are needed to protect myself against lawsuits? Does the care provider take all of the risk in malpractice insurance? I will just own the property, so other than structural improvements, am I clear of any other mishaps that can take place in businesses like this? Are finding assisted care providers to rent out the facility hard to find or come by? I am trying to explore this investment opportunity, and will crunch the numbers so that operating cost and property purchase price will be covered and still cash flow. As I said prior the building as already set up and zoned appropriately. Any insight would be greatly appreciated. Am I biting off more than I can chew having no experience in this field? I own rental properties and have rehabbed and flipped 2 houses recently.