Maybe weigh the potential appreciation against the negative cash flow and see which one feels like the lesser evil.

The idea is to move away from licenses being issued at the discretion of the commissioner, to streamline the process and have any properties that complete the application and meet the criteria get a license. 

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 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 to 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 to 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.I know tons of investors who are renting out their properties using this strategy here in Fort Worth. 

They're running into issues with potential refinancing. 

Heavy HOA/assessment fees bring down estimated net collections around 20k per year after ALL fees/taxes/insurance/realtor/potential-repairs etc. 

I agree that the gain could have potentially been offset by utilizing various different methods such as a Sec. 1031 exchange, but this would've just kicked the tax can down the road further (except for death which is a whole other topic). 

Crunch the numbers - Carefully calculate potential cash flow, ROI and cap rate.

Or, you can call your local credit union and they will likely either have an application to fill out or start asking you questions, and they should guide the whole process from there.

A management company will be able to market the home, push the listing to all the rental sites, process applications, and have a lease for you to use. 

We're pretty new to the space and have our first potential client.