We have been taking over rentals for long term that were previously short term for all the same reasons you've mentioned.

Rents for long term have been steadily increasing for years here, but you're right, they do top out at some point.

Being out of state, I would suggest vetting your "team", meaning find an investor realtor, lender/s (hard $ / long term), property manager, contractors, etc.

Did you make sure their health provider met the requirements of AB468?  

Purchase price: $186,000 Cash invested: $46,500 Home was built in 2018 as a long term Section 8 rental unit.

Purchase price: $270,000 Cash invested: $20,000 Current residence, will be renting out long term starting March 1st, 2025 What made you interested in investing in this type of deal?

Many syndicators, including myself, base their projections on a five-year term.

Quote from @Albert Johnson: Tenants never complained of a health issue.

The lender actually said he will only underwrite my property as a single renter long term rental based on comps. 

Purchase price: $360,000 Cash invested: $96,000 Purchased my first investment property in summer 2017 while living in SF, a new construction home intended as a long-term buy-and-hold.