You also need to objectively screen your properties and think about it in terms of your clients, which by the way are not the elderly residents you place, but rather their children who will be screening your homes for their parents.

Some people on this site are more focused on near-term cash flow, but my personal objective is long-term equity accumulation and what my portfolio will generate 10-20 years from now. 

The objective now should be preserving capital, never mind any gains. 

In co-living the bedroom is no longer recreation but purely utility - for sleeping, perhaps some private time for listening, but you're not spending much time there...this is because this type of living is not typical for someone who has a lot of time to kill - it's intended for those in transition who are working toward some goal or objective whether that being to save for an apartment or to get a new career off the ground.

Each situation requires an analysis to determine what your individual objectives are.

It includes, among other things, a comprehensive map of the Cleveland area, grading each area from A+ down to F, using a consistent, objective and transparent methodology using publicly available data.

Be adaptive during rehab to ensure you stay with your planned objectives.

Do your tenants ever object to paying this way?

That is what covers falling objects. 

The need for liquidity/access to capital/income, risk tolerance, investment objective and time horizon will drive this decision.