Based on the current demographics the town has a demand for a good affordable retirement facility.
The current building has an outstanding 22 bed domiciliary facility which is always full and has a waiting list.
An additional 45 beds are possible in a separate building complex. See site plan.
The site is well situated close to the town’s amenities and will attract retirees wanting to be close to their roots, family and friends.
Profit & Loss Projections | ||
EXISTING | PROJECTED | |
22 Beds | 37 Beds | |
Gross Income (at $1,500 per bed) |
$400,000 | $666,000 |
Less Vacancy 5%* | $0 | $33,300 |
$400,000 | $632,700 | |
Operating Expenses | ||
Payroll** |
$175,000 | $220,000 |
Food & Supplies |
$64,000 | $86,000 |
Accounting/Legal |
$3,000 | $3,500 |
Business Fees |
$1,500 | $3,000 |
Insurance |
$10,700 | $15,000 |
Property Tax |
$11,100 | $14,000 |
Utilities |
$10,750 | $16,000 |
Repairs & Maintenance |
$4,000 | $6,000 |
Vehicle Costs |
$3,000 | $3,000 |
Telephone/Internet |
$4,000 | $4,000 |
Total Operating Expenses |
$287,050 | $370,500 |
Net Operating Income | $112,950 | $262,200 |
10% Capitalization Rate | $1,129,500 | $2,622,000 |
* No vacancies in existing | ||
** Includes Administrator and management |