Buying vs Renting: Which is Better for Adult Residential Facilities?

[@preservation_of_institutions]

Me and a partner want to open a GH in the LA area. I’m a soon to be retired teacher and he’s a building contractor. You look like a guy we need to be dealing with.

[@socaltrainingteam]

Yes, I been doing this for 24 years

[@preservation_of_institutions]

I’m from LA but buy out of state where the price to rent ratios are 6 to 7. Way more bang for the buck. Then take that income and rent in a city like LA where the ratios are higher than 33. What that means is that with about 250k (cash no mortgage) I can net 4500 a month and with very low property taxes, but in Los Angeles I’d need about 1mil to do that and property taxes would be 8x as much. Buy out and rent in.

[@asmatullahamiri724]

Quick question, so if you rent a home while the inspection is done can you just go without a home until it is time to get a client, and then you can rent another home, just to save rent money be cause the process takes long and its hard to keep paying for the rent for 12-18 months of process with no income

[@socaltrainingteam]

Hi, unfortunately the answer to this is no. You need to have operation funds for the business.