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. 

Posting on a local RE group in that area might be a good option as well to get recommendations from others

But I personally value buying property in an area that appreciates more and has the potential for better tenants and rental increases, so I will easily give up the idea of the 1% rule, as I think future growth is much more important to me. 

Thanks much Jay,Aussie Aussie Aussie heheG'Day Kim,Welcome to the wonderful world of investing in US property hehe.I just exchanged a few emails with the Australian Property Investor Magazine and they'll be writing a few articles about my experiences here so that should be out sometime in April 🙏These fella's are your "Go to" for anything and everything Detroit.

We represent many Homeowners Insurance companies and Most do not write Log cabin construction. 

@Rebecca Busch - Finding a RE specialized tax advisor is not an easy undertaking.

The income from these loans makes up about 10% of the partnership's gross income for 2023 (but will likely be a larger percentage in future years). 

This sheet is mainly for calculating COC-ROI if you were to Re-finance afterward with a bank.  

The individual is deeply entrenched in his beliefs and has stated his unwillingness to vacate the property.Legal eviction proceedings are underway, and we have a scheduled date in the near future.

There will always be costs when completing any type of RE financing.