Values drop, sometimes drastically, rents go down as quality of tenant declines; cost of operstimg properties increase, and governmental interference, especially in the form of rent control, can slash values and profitability severely. 

With a team, even if you’re paying salaries or commissions, you could close 25 deals a month.From there, increase your marketing, improve your SEO, and keep spending money to make (far more) than you spend.Keep scaling and tweaking until one day, you realize a steady stream of leads is coming in through your SEO efforts.At that point, you can turn off your paid marketing and enjoy the highest-quality leads for free—without lifting a finger.Let me know if you have any concerns or questions!

A standard Landlord/Apartment policy will not allow the building to be owner occupied, especially if the title is no your personal name.

Of course, there are always multiple ways to overcome any challenge, but this is how we have done it so far...My partner and I currently own and operate transitional living houses in a Midwest city, and it is definitely a different business than owning or managing standard rentals.  

I am trying to figure out whether the quality of renters and level of crime in the area would make it a good place for Class B quality buy and holds.  

@Daniel DeBruin, this is really all market dependent and how much you want to spend versus how much it will impact both the rent you can achieve as well as the quality of tenants it attracts.When it comes to design, it is all a bit personal opinion, but I will say: contiguous flooring always trumps mismatched, hodge podge flooring.  

A higher quality property in a better neighborhood in a better city is gonna outperform any Cleveland property in the long run.

You'll have better quality assets, and  more reserves.

You’ll want to check out the PA Code's Chapter 2800 for the standards around licensing, safety, and staffing requirements, and the Assisted Living Residence Regulatory Compliance Guide can provide extra insight.We actually have a local team here in Allentown that has worked on several of these conversions, so if you'd like some guidance or just want to chat through the process, feel free to reach out.

In order to harness as much of the effects that add to your net worth you want to buy as many assets as you can, and as much quality as you can afford.It is very tempting to go into cheap neighborhoods, but especially with the old housing stock we have in the Midwest capex will exceed cash flow over time and you are not building equity.Consider your first deal a proof of concept.