Congrats on submitting that offer and perusing Senior living, either for you or your client.I have been involved in the purchasing process for several senior living facilities, and work closely with a few people who operate RCFE, sober living, and similar types of properties.From what I have learned, the most important thing to keep in mind when purchasing RCFE properties, is that you are also purchasing a business.

As you alluded to, sometimes a passive note investment purchased for monthly payments “goes south”, and becomes an active participation investment, with plenty of additional capital required for legal fees, forced place insurance, and property taxes.  

Hey All,I'm a newer investor in the Phoenix area and I recently passed 1 year since purchasing my first duplex and house hacking it.

I can leverage my WLI cash value to purchase it outside the banking system.  

Purchase price: $75,000 Cash invested: $95,000 Bouight this 6 units with owner finance.

This would allow you to indefinitely defer all of the tax if you sold, and use the tax you would have had to pay, to purchase something nicer in an area with a greater growth potential.   

I purchased a house a couple of years ago and a portion of the purchase price was done with seller financing. 

It would take 4 years to save another $100k before I could make another purchase based solely on the cashflow.

Purchase price: $171,000 Sale price: $185,000 Contributors: Peter Vekselman Partner Driven teamed up with Nathan Ward to secure a profitable deal on Day Rd in Leoma, TN.

I look at cash flow, purchase price and prospects of appreciation.