buying property to service assisted living seniors

[Diron Binns]

New REI looking to buy property to service older seniors who need assisted living. How do I know if the area will have an abundant population of tenants and how do I know if the area will be a good location to buy. Im looking to "hack" the rooms first and build up the clients to service over time.

[Travis Sperr]

I am see this strategy a lot in my market, a lot of research required. The short list of what I am seeing - very capital intensive - the repairs to the property needed to meet all code and health requirements typically require a construction budget that far exceed the value of the property. 

Difficult to finance - because the basis is typically higher than the value of the property and the value is in the business not ht property. for instance an 8 room house designed for a senior home is only at its best value when being used as a senior home collecting the monthly fees. where alternatively a house is a house rented or not. 

Be sure to understand local and federal requirements for said strategy.