Texas home equity laws are different then the other 49 states and do NOT allow for these arrangements.

As @Max Yuan stated, this is a numbers game.

When I was closing on my first out of state property, I verified what the agent said to what the lender/PM said about the location of the house and asked them questions about the area in general and what parts of the city to avoid.

I realized then original lease does not have my "exemption" stated in it. 

You're dealing with people that are in a fragile state and need a lot of help and support.

Side note, our governing documents also specifically states that all HOA assessment liens will be junior to the mortgage, so I also think they can't pursue a super lien despite Colorado allowing it.I have a meeting with an attorney tomorrow (Front Range real estate attorney recommendations?)

Quote from @Nicole Heasley: Is this a state-by-state thing or federal?? 

No state income taxes.

Therefore, the only patients a nursing home like this could get is state Medicare, which does not pay enough to cover anything other than MARGINAL costs.  

I have liquid funds ready, but I want to make sure this is worth my time compared to the 5-6% cap rates I've seen on multifamily units in South Florida, which are close to what I already get from CDs and high-yield savings accounts without the hassle of property management.I'm also hesitant to invest out of state since I'm new to real estate and don’t want to make a costly mistake.