Here is what I am considering for my 1st deal:$63k purchase price for a duplexRents are $550 each unit + utilitiesRE Taxes are $1,517 per yearHere is what I underwrote:20% down6% fully amortizing 30 year loan(P&I of $297)Repairs: $50 per month (reserve)Trash: $30 per monthInsurance $150 per monthTravel: $60 per month (2 trips)Contingency: $50 per monthTotal operating expenses: Including RE Taxes of $511Total Income less 10% vacancy: $11,880Total Expenses of: $6,137NOI of $5,743Debt Service of: $3,569Cash flow: $2,174 or $181 per monthIs there anything I am missing?

OTOH, I've confirmed that they *are* the primary operators and owners of the business, from several online sources, including Oakland BBB.

I would check them out if they do operate by you.

Depending on what you want to do they can be very,very involved.Most developers are buying value add buildings already constructed and operating for less than what it cost to build new.They are still building in areas where demand is really high and not much product is available.With that you have to see who is building what and where and how many other applications for new buildings for the area are in the process.You have to time the market with your land purchase,build out,and lease up so that you are not finishing your product in a saturated market.You can have 55 and over regular communities, acute care only,or a mix etc.Income is good but management and regulation is more intensive.Depending on size you would want to bring on a senior housing developer with a track record of experience.

One benefit of real estate is that you can get your hands on it and create operational savings/earn sweat equity.

If somebody else is going to be doing the asset management and property management, it may be ok to never see the property as long as you trust the operator you're working with.If you are going to invest in it on your own, I think you need to see it!

Without involvement in commercial lending I would never have become partners in various business operations.

And this one has been neglected to the point where its no longer operational.

Consider an all cash deal: with operating expenses running 45%-50% of gross rents, if you don't have a mortgage payment (i.e. you pay 100% cash), then the property certainly should have "cash flow".

Knowing what is important and then how to operate the LLC correctly could be a completely different matter.Either pay for a lawyer or pay for training materials so you operate correctly.The value of the LLC is not from having one established.