Great connecting with you. Let's stay in touch. Got some valuable tips from you as I try to navigate my first facility.

Agreed on being able to handle it personally. Business wise, let's assume both properties will be cash flowing after debt. Will the banks see this as a good thing, or will they see it as taking on too much debt even though the properties are cash flowing? Maybe they will look at all the properties and see what the combined/averaged DSCR is and make sure that's still covered?

I was having the same problem in the beginning. Trying to figure out how deep to go into my research before sending out the LOI. Didn't want to put out a number and then have to re-trade later. As Mike says, maybe back of the napkin info is good enough to put out the offer. Maybe stay on the conservative side of your price range if you're not too sure. Having software like TractIQ does allow you to move quicker since you can quickly get info about the market within minutes instead of manually trying to figure out saturation, population, income, competition, and etc. This allows you to look at more deals since you're not bogged down into researching that info for every deal. Of course, you'll still have to verify those numbers during DD since TractIQ does not always have correct info.

Thanks, @Wes Eaves. I agree that the current vs optimized value comparison is more valuable for existing facilities. I don't look at the $/sf that much, but I know some do. Just one data point to look at out of many to make a decision. Just trying to figure out how they are using it. Maybe it's a quick filter to see if something is worth looking into deeper? $60/sf just seems high to me because I was looking for something in the high 30s or mid 40s range. Wanted to see if I was thinking about it correctly.

@Ying Fu Are you using that price of $60 for all types of facilities in general or do you have different numbers for NCC vs CC?

@Shane Chapin when you start rolling out the rent increase, is it strictly for units that have the highest variances first regardless of when their last increase was? Normally, those with more recent increases would not have that much variances but you never know. Sometimes people might have some kind of sweetheart deal.