I hear the BP podcasts reference interesting data points like; price to rent ratio, time on market, vacancy rates, population growth, etc.

Most of this is due to the current high-interest rate climate.With the amount of equity you have, you could get a huge bang for your buck doing a 1031 exchange into a 5-unit or greater property -- perhaps substantially greater than 5 units.

It should likely be capitalized and bonus depreciation can apply (special depreciation) which accelerates the rate at which you can write off the asset. 

So they can replace the people that move out with people you approve of after proper screening..... keep the same number of people and now the total rent is split between them, so the per person goes up..... or they all move out and you start all over to rent it at current market rate. 

They are 1.5 DSCR+ with todays rates.. soon will be close to 2.0! 

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. 

First, I am planning to refinance the portfolio when the rates go down (whenever and if that occurs), so I'll probably not be realizing much of the principal reduction value as opposed to if I kept the loan for the full term.

With Rates 11%+ and a project rehab time 6-8 months. 

If you are paying a premium you better make sure the tenant is really strong (typically Standard and Poor's) BBB- Investment grade rating or better.

This is due to higher interest rates and it is happening in most parts of the country.