In Columbus, we take all of these issues you just mentioned and build a stacked triplex that has high density (42 dwelling units an acre), public utilities, higher rents per square foot, cost per unit under $115k basis for the investor (not $300k for a single family) and that is attached here.

@Jess AzongSo, if Title is held by the LLC and the loan is being issue to the LLC (good job in keeping it clean), the refi should issue the cash to the LLC. 

It's not about risking just your tenant or the rental aspect itself-- you could have a personal life issue that now lets the real estate become accessible.

I've looked a few places and people have commented that this isn't an issue.

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.

That means you have to hire an attorney with uncertain outcomes.This has happened on properties I have acquired, I have never had an issue with the Trustee, I just talk to them, walk them thru the deal, all has always been OK, never had to hire an attorney for a bankruptcy.

Not that being out of state affects the cost in that regard, but you may find it more difficult to properly vet a manager, especially when it comes to their attitude toward residents who may need more flexibility, compassion, and patience than in a market rate building.Second, and bigger, issue is that HQS inspections are a very real thing.

Usury (and a whole host of other legal compliance issues) need to be answered and addressed by an attny who does this on a regular basis.  

We had issues with break ins so one of our employees at the time moved in to aid in security.

I don't know, but I'm guessing perhaps there was a leak/flood and the subfloor rotted, and/or pet urine that soaked into the subfloor, and/or mold issues?