Care Homes

Why no risk? This innovative government program allows you to budget the FULL costs of operating this home INCLUDING FINANCING COSTS (Principal & Interest). The government covers all the budgeted costs and allows you a generous Owner's overseeing income. Government subsidized Residential Care Home with long-term residents. Subsidy is not dependent on occupancy.

As costs go up, so does the budget. Therefore, you do not have to worry about: 

                        • increased labour costs;               • increased inflation cost

                        • Increased interest rates              • increased food costs

                        • increased property taxes            • vacancies

                        • increased insurance                    • maintenance

Budget is reviewed and renewed each year to ensure all costs are covered.

FEATURES OF THIS HOME:

1.     Fully updated with sprinklers

2.     Individual heating & cooling for residents. 

3.     All capital improvements ($370,000) are complete.

4.     Annual Budget is negotiated with the Government agency.
        Covers all costs including financing (principal and interest).

5.     Management, (27 years) and staff in place for a turnkey and
        â€œhands off” operation.

6.     Home is located downtown in a booming city with valuable real estate to
        back up your investment.

Please note, in order to be accepted for the government contract the Principal owner must have at least 3 years experience in operating a residential care home.

Government subsidized.

Currently at capacity with a waiting list.

Turnkey operation with management in place.

40 minutes from Ottawa

PROFORMA

Housing with Support

Revenue $769,783 *

Less Vacancy 5%   $38,489    $731,294

EXPENSES Insurance $8,359

Interest & Bank Charges $3,500

Office & General $4,000

Professional Fee $2,500

Property Taxes $16,500

Repairs & Maintenance $10,000

Salaries & Wages $138,000

Supplies $75,000

Travel/Vehicle $7,000

Utilities $55,623

TOTAL EXPENSES $320,482

NET OPERATING INCOME $410,812 *

Based on 38 x $1,688.12 x 12months.

At the time of preparation of this Proforma some residents were waiting for enrolment into County program. Proforma based on 2021 operating costs and the recent full occupancy of 38 residents.

Currently there is a 4-6 person waiting list. Information provided by the Seller. Buyer MUST verify all information.

RETURN ON INVESTMENT REVENUE

Gross Revenue $769,783.00

Less Vacancy 5% $38,489.15

Net Revenue $731,293.85

EXPENSES Insurance $8,359.00

Interest & Bank Charges $3,500.00

Office & General $4,000.00

Professional Fee $2,500.00

Property Taxes $16,500.00

Repairs & Maintenance $10,000.00

Salaries & Wages $138,000.00

Supplies $75,000.00

Travel/Vehicle $7,000.00

Utilities $55,623.00

Total Expenses $320,482.00

Net Operating Income $410,811.85

CAPITALIZATION RATE

Purchase Price $2,900,000.00

Capitalization Rate 14.17%

FINANCING ASSUMPTIONS

Purchase Price $2,900,000.00 30.00%

Down Payment $870,000.00

1st Mortgage 5 YR at 4.00% $2,030,000.00

Monthly P&I $10,678.21

5 YEAR RETURN ON INVESTMENT 5 YRS x N.O.I $2,054,059.25 INTEREST for 5YRS $377,887.11

Net 5 YR Income $1,676,172.14

Total R.O.I 192.66%

Average R.O.I per year 38.53%

MONTHLY CASH FLOW

Operating Income $34,234.32

Monthly P&I $10,678.21

Net Cash Flow $23,556.11

Note: All data provided by Sellers.

Buyers to varify all data.