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ALF buyer due diligence: the physical, financial, and operational checklist

What to verify before you commit, from the roof and generator to rent rolls, labor, and licensing.

ChecklistUpdated By Stoic EstatesPart of ALF

Successful ALF acquisitions are team sports, not solo acts. Due diligence is where the team earns its keep. Use this as a starting framework and adapt it with your attorney, lender, and CPA.

Physical

  • Roof age and condition
  • Generator
  • Plumbing
  • Sewer or septic
  • Termite history
  • Fire and life safety systems
  • Code and permit issues
  • Overall physical condition

Financial

  • Rent roll and resident rates
  • Gross and potential gross income
  • Occupancy history
  • Payer mix
  • Labor cost and staffing
  • Food and utilities
  • Insurance
  • Verified expenses

Regulatory and operational

  • License type and capacity, and any specialty licenses the facility holds, such as extended congregate care, limited nursing services, or limited mental health.
  • Inspection and complaint history.
  • The change-of-ownership application with Florida’s Agency for Health Care Administration (AHCA), including the transfer of resident funds and deposits, and how its timing fits your closing. Confirm current filing requirements with your ALF attorney.
  • Operational systems: records, medication management, staffing, and policies.

Buyer profiles we see

Experienced operators, 1031 investors, strategic buyers adding locations, and first-time operators. First-time operators should plan for substantially more education and a strong administrator.

Mitigate risk and look for the upside. Due diligence is not only about finding problems; it is also where you find what can be improved after closing.

Sources: Fla. Admin. Code R. 59A-36.003, ALF Licensing and Change of Ownership. Last reviewed September 28, 2026.

Your next step

Apply this to your own situation in a few short questions, with guidance before you share any contact details.

Start the ALF buyer assessment

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This content is educational. It is not legal, regulatory, licensing, financing, or tax advice. ALF transactions should involve an attorney experienced with assisted living facilities, a CPA, and a lender.