This is a great option to bring in familiar tenants for their environments. 

In this environment generally speaking that would not make a lot of financial sense. 

How is the local lending environment in the area you suggested?

Additionally, Ohio's generally landlord-friendly legal environment, compared to Philadelphia, makes it an appealing investment location.

The environment is crowded with BAD "contractors".

I'm using an FHA because it's an assumption loan and I'm getting a very favorable rate so I thought this would be better than using a conventional loan which at the current rate environment would be more than double the rate on the assumption. 

So in this current economic environment, a "bad risk" is anyone that makes a claim against an insurance policy.The damages have been remediated, the interior of the home has been rehabbed, including a complete kitchen makeover.My insurance agent had difficulty finding me a replacement policy, given that the property was untenanted, and undergoing construction.

I always tell people that I think one thing to consider in this environment is whether you have a high or low interest rate loan.

Positioned to prospective investors as a "protected" or "safer" investment, it is really being injected, in many cases, into underwater deals that can't be valued in today's environment. 

Pros:Stable Income: These facilities often sign longer leases, providing landlords with a more stable and predictable income compared to traditional residential rentals.Higher Rent Potential: Because these facilities generate income through the services they provide, landlords might negotiate a higher rent than standard residential properties, reflecting the commercial nature of the tenant's business.Lower Tenant Turnover: Residential assisted living facilities tend to have lower turnover rates, reducing the frequency of vacancies and the costs associated with finding new tenants.Social Contribution: By renting such facilities, landlords contribute to addressing the growing demand for assisted living and support services, positively impacting their community.Property Maintenance: Tenants in this sector often maintain the property well to comply with regulations and ensure a comfortable living environment for their clients, potentially reducing wear and tear.Cons:Regulatory and Compliance Issues: Facilities must adhere to strict regulatory and compliance standards, which can involve the landlord in complex legal and zoning issues.Higher Insurance Costs: The nature of the business might require additional insurance coverage, potentially increasing costs for landlords if they are responsible for carrying this insurance.Modifications and Upgrades: Meeting the specific needs of an assisted living facility may require significant property modifications and upgrades, which can be costly.Market Limitations: Should the lease end or the facility close, the specialized modifications made to the property might limit the market for future tenants, potentially requiring substantial investment to revert the property for standard residential use.Operational Oversight: Landlords might need to monitor the facility's operations more closely to ensure compliance with lease terms and local regulations, requiring more hands-on involvement than traditional rentals.