To Buy or To Lease: A Guide for RCFE and ARF Owners
Should I buy or lease an RCFE or ARF? What are the advantages and disadvantages?
Buying an RCFE or ARF:
Pros:
– You have full ownership and control over the property and the business.
– You can customize the facility to suit your needs and preferences.
– You can benefit from the appreciation of the property value over time.
– You can write interest and depreciation off your taxes.
Cons:
– You need a large amount of capital to purchase the property and start the business.
– You are responsible for all the maintenance, repairs, and upgrades of the property.
– You bear the risk of losing money if the property value declines or the business fails.
– You may have difficulty selling the property if you want to exit the business.
Leasing an RCFE or ARF:
P- Pros:
– You have lower upfront costs and less financial risk than buying.
– You can start the business faster and easier than buying.
– You can relocate to another facility if you are dissatisfied with the current one or if your lease expires.
– You can focus more on the operational aspects of the business than the property management.-
Cons:
– You have less control and flexibility over the property and the business.
– You have to pay rent every month, which may increase over time or vary depending on market conditions.
– You do not build any equity or benefit from the appreciation of the property value.
– You may have to comply with the landlord’s rules and regulations, which may limit your options for customization or expansion.
–THINKING OF BUYING OR SELLING?
Let the RCFE Resource team of professionals bring proven expertise to help you get the highest price for your Assisted Living or Health Care properties. We are pleased to offer a complimentary, no-obligation valuation of your home and business. Please call today for your FREE consultation.
Michelle (949) 397-4506 | michelle@RCFEresource.com
Melvyn (949) 500-3630 | melvyn@RCFEresource.com
