Co-housing rental advice please

[Sean Walsh]

Hey there. I am a newbie here with the BP community and have a very unique property that I would really appreciate some advice and insight into. My business partner and I originally bought this property to turn into a very high end 6 person care facility. It is on two acres and has two homes. One of which is 6534sf and the other is 1484sf 3/2. With some basic remodeling the large facility can have 13 bedrooms, 1 suite (bedroom, small living room, and a really nice bathroom), and a freestanding cabin (225sf) with a half bath in it. After a little remodeling the home would have 8 full baths. Rentals are impossible to find here in Grass Valley Ca. We are entertaining this property being a co-housing home. Now for the advise and feedback: The small house would rent for $2000, the 13 bedrooms $900 each, the suite probably $1400 - 1500, and the cabin $1100.00. If all utilities were included I do not see $1000 a bedroom being an issue.

The location is ideal, and everything about it is luxury.

Fully occupied this property could produce $16,200 a month. We are looking to do this and put a 1.5mil price tag on it. The two questions I have for you guys which would be SOOO helpful and much appreciated is:

1. Does that sound like a good return on a 1.5mil property?

2. Would you rather the place be empty or filled?

3. Anyone ever come across issues with local jurisdictions not allowing more than ____ people to rent rooms in a home?

Any other input and advice would be much appreciated. Here are some pictures to get a feel for the property. Thanks!