In testing the market to rent it, I have a nurse who contacted me to rent the house and use it for a group home for elderly or personal care home.I have several questions:Do I have to rezone my property?

Add to that the credit scores required, when often elderly people aren't using credit, therefore; have no score or low scores. 

However, for people such as myself and my neighbor, an elderly, retired woman living in a low-income neighborhood, we would be depleting capital otherwise used to support our living expenses.Has anyone in the BiggerPockets forum faced similar situations in the past? 

A good rule of thumb that I think throw is if I'd let my wife (substitute child, elderly parent, etc.) come by at 10:00 pm to pick up late-rent in cash.

My family members (late 70's and late 80's)  are house rich and cash poor living on social security and trying to make ends meet.  Their mortgage will not be paid off in their lifetime with about 25 years left on a 30...

Here is a description from their website:MORTGAGE INSURANCE FOR RENTAL AND COOPERATIVE HOUSING: SECTION 221(D)(4)Summary:Section 221(d)(4) insures mortgage loans to facilitate the new construction or substantial rehabilitation of multifamily rental or cooperative housing for moderate-income families, elderly, and the handicapped.

I’ve recently been researching residential assisted living whereby you purchase a large home and move elderly tenants into each room but then also provide home health aides 24 hours a day.

Correct, as I'm investor in this side of business so I understand their primary target is high-appreciation class A/B+ in selected city only like in California that's owned by elder retiree.

What if I was talking to an elderly couple that were concerned they would run out of money but want to continue living in the house, so they want to sell to me in a life estate.

oops @Bruce Petersen :)Maybe is was @Devin Elder in SA