Greetings,Here is an update on the current National Commercial Office Real Estate Market in The United States of America as of March 10, 2024:In the challenging landscape of U.S. office sales, a potential bright spot is that sales activity may have reached the cycle low.

The space is most appropriate for a couple with 1-3 children, 3 single adults, or even a couple with a grandparent or nanny and a kid or 2.From what I'm reading, the law protects families with kids from discrimination, but can I get in trouble for doing the reverse and allowing (and potentially advertising) a higher occupancy rate if people have babies and children than if all occupants are adults? 

Secondly, leverage social media platforms like LinkedIn to showcase your expertise and connect with potential investors.

Not sure who you are wanting to be brokered with but I can only say positive things about KW.Remember to keep your pipeline full of potential clients and always keep your fiduciary duty. 

The potential value it had and the current condition which only needed cosmetic work upgrades.

Just be sure to have a plan in place to avoid any potential financial risks.

Maybe weigh the potential appreciation against the negative cash flow and see which one feels like the lesser evil.

Pros:Stable Income: These facilities often sign longer leases, providing landlords with a more stable and predictable income compared to traditional residential rentals.Higher Rent Potential: Because these facilities generate income through the services they provide, landlords might negotiate a higher rent than standard residential properties, reflecting the commercial nature of the tenant's business.Lower Tenant Turnover: Residential assisted living facilities tend to have lower turnover rates, reducing the frequency of vacancies and the costs associated with finding new tenants.Social Contribution: By renting such facilities, landlords contribute to addressing the growing demand for assisted living and support services, positively impacting their community.Property Maintenance: Tenants in this sector often maintain the property well to comply with regulations and ensure a comfortable living environment for their clients, potentially reducing wear and tear.Cons:Regulatory and Compliance Issues: Facilities must adhere to strict regulatory and compliance standards, which can involve the landlord in complex legal and zoning issues.Higher Insurance Costs: The nature of the business might require additional insurance coverage, potentially increasing costs for landlords if they are responsible for carrying this insurance.Modifications and Upgrades: Meeting the specific needs of an assisted living facility may require significant property modifications and upgrades, which can be costly.Market Limitations: Should the lease end or the facility close, the specialized modifications made to the property might limit the market for future tenants, potentially requiring substantial investment to revert the property for standard residential use.Operational Oversight: Landlords might need to monitor the facility's operations more closely to ensure compliance with lease terms and local regulations, requiring more hands-on involvement than traditional rentals.

After the property is renovated and rented out, they seek to refinance the property with a traditional mortgage to pay off the hard money loan and potentially extract some cash.However, some lenders impose a seasoning period for refinancing, which means that you must hold the property for a certain period (often six to twelve months) before refinancing is allowed.

I agree that the gain could have potentially been offset by utilizing various different methods such as a Sec. 1031 exchange, but this would've just kicked the tax can down the road further (except for death which is a whole other topic).