Those that own it can be harder to sell as the cash flow from the business will cover the debt service for the business, but not for the real estate.Example: I had a very high-end assisted living facility on the market. 

And the cost of legal defense , even if successful, will drive the company out of business.   

(This option would would not carry any debt, all debt would be paid in cash)Or keep our current house, rent it out, and cash flow NET monthly about $1,500?

@Sharon Porter,Investing in a state-controlled property like this can be an opportunity, but it's critical to understand the legal and logistical nuances.

Since you’re assuming this debt as part of the purchase, understanding the exact amount is critical.

There is no UBIT because your investment isn't leveraged with a mortgage or debt.

There is almost no scenario where a condo would ever positive cash flow while servicing debt, and very little positive cash flow with no debt.If your budget only allows for a condo, find a better place to put your money to work.   

The tenant consistently paid late after pandemic, eventually declared bankruptcy, and leveraged the legal system to drag out the eviction process for nearly a year.

Is there debt on the property or are you doing all cash?

In this case, she had no right to the common area and no legal standing for a lawsuit.