Some of these are run by a leader and require a fee.

If you require an 8% APR to make a deal work, you don’t have a deal. 

They are much easier to work with and they are not required to file tax returns. 

Keep in mind if on well/septic there are likely acreage requirements-Site Engineer, does your area require a site engineer to draw up plans, pull permits, determine right of ways et with fire/utilities.

I didn't realize the $2-3M in other investments requirement to be honest. 

I expect and require humility, fear, discussion of lessons learned, and a cautious rationale for why and how htey will move forward. 

We're talking with someone who may be coming into our company's leadership that will require health coverage.

After closing find a buyer for the unwanted property and conduct a partial release with my lender.I assume option 1 would require me to pay capital gains on the sale and I wouldn't have the ability to 1031 since I will not have owned the property longer than a year.

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.

In the year that the investment property is sold, should the cash flows include not only the cash inflow from the sale of the property but also a cash outflow equal to the mortgage balance on the Balance Sheet at the time?