Which Approach to Value an Addition to a Daycare in a Dwelling

[J Grant]

Cages to lock the kids in-

 

[Surf Cat]

Cages to lock the kids in-

At least leashes......

 

[Terrel L. Shields]

At least leashes......

If you see a kid on a leash you probably should not ask if they were a rescue.

 

[DTB]

You don't need a current sale to identify how such a property has previously sold or rented relative to other property types.

Good point but I have always wondered if market acceptance with or w/o an adjustments really reflects what the market acceptance would be today.

IOW styles and tastes change and the greater the time from today the less likely they are to be the same.

 

[J Grant]

Idk what percent of people are liceneds to run a daycare business, but I bet it is pretty low - 2%? ( just a guess ) lets be generous and assume 5%. How many of the 5% licensed daycare folks are going to buy a property like this ? ( can afford to and are in the market for it ) . An even smaller percent

So the OP is going to use a CA and ignore similar closer location comps and search only for daycare sales, even two states away, to appeal to a fraction of buyers who are licenced to run a daycare center - .

I did not see the popery, but he mentions it has walls torn out- it is not a big deal to put up drywall or other to re-configure an area,( the potential while buying AS IS) l on the logical assumption that a large dwelling of a mixed-use property could appeal to a larger pool of buyers. (including daycare interest buyers )

 

[Terrel L. Shields]

How many of the 5% licensed daycare folks are going to buy a property like this ?

Normally, someone buying one would be assumed to seek such a license. It is not like obtaining a liquor license nor a Colorado intrastate truckers license. No limits, no politics and always a need. So, if you can pass the background checks you can get a DC license. So, the buyer pool is limited to only people wanting to buy a job. The only reason they are building on is to fill a need and expand the business.

 

[J Grant]

Normally, someone buying one would be assumed to seek such a license. It is not like obtaining a liquor license nor a Colorado intrastate truckers license. No limits, no politics and always a need. So, if you can pass the background checks you can get a DC license. So, the buyer pool is limited to only people wanting to buy a job. The only reason they are building on is to fill a need and expand the business.

What percent of buyers out of a total pool want to go into the daycare business and apply for a license?

And a daycare license is rather strict, and the business has a low appeal - again, the question is if a limited pool of buyers has a daycare license or wants to get one ( and can afford this property), what percent of buyers does that represent approx estimate?

VS a larger pool of buyers who might use the property for a variety of more common uses - and that of course, would include the day care buyers )

 

[J Grant]

a uick look up -​

Day Care in the US - Number of Businesses​

IBISWorld
https://www.ibisworld.com › day-care-united-states



Sep 26, 2024 — There are 568,320 Day Care businesses in the US as of 2024, a decline of -1.9% from 2023. Has the number of Day Care businesses in the US grown ...
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Dec 14, 2023 — Even before the COVID-19 pandemic, a typical U.S. child care business operated with approximately a 1 percent profit margin.

 

[J Grant]

A teeny fracion buyers want to get a license for a business with a 1% profit margin so lets make the HBU limited to those buyers.

 

[J Grant]

A business license that has worse prospects than a res appraiser license!
A day care license!
A 1% profit margin and high liability and screaming kids all day - make appraisal look good! We have a 2% profit margin, and client screaming is muted thanks to the internet, puts us ahead! yea!