Senior housing Acquisitions - The outlook for the future
Let me know your outlooks and perspectives on the pros and cons
[{"id": "i5w3gcf", "text": "Do it", "replies": [], "depth": 1}, {"id": "i5w4qjo", "text": "Do it.\n\nPeople get older every day. The only draw back is that your rates for sale or rent are somewhat limited compared to the open market. Aside from that, the boomers are getting older and soon so will thier kids and so on and so on.", "replies": [], "depth": 1}, {"id": "i5w5r82", "text": "Are you thinking of developing and renting, or developing and selling, or converting an existing property?", "replies": [], "depth": 1}, {"id": "i5w9rzf", "text": "Large Senior home acquisitions", "replies": [{"id": "i5y7o31", "text": "How large?", "replies": [], "depth": 2}], "depth": 1}, {"id": "i5yt1ox", "text": "Well there are various types of senior housing: \n\n1. **Age-Restricted Housing** - operates much like a regular apartment property, but with extra in operating expenses and management fees because of amenities provided in excess of what a regular apartment property would incur. \n\n**PROs**: Demand, tenants have a consistent source of income\n\n**CONs**: Costs to build are typically higher because (for example) all bathrooms must be ADA compliant, etc\n\n**OUTLOOK**: Very Positive\n\n2. **Senior Living Housing** - includes all of the amenities above but with medical staff of some sort on staff 24/7. Maid service of some sort as well as meals are typically provided.\n\n**PROS**: Grants/government programs are available \n\n**CONS**: Less demand because rents are significantly higher, incredibly uncomfortable tenant turnover situations \n\n3. **Memory Care Housing** - more like running a medical facility than CRE", "replies": [], "depth": 1}, {"id": "i5zkpvn", "text": "Turnover situations?", "replies": [], "depth": 1}, {"id": "i78kcmc", "text": "Just because you buy a senior housing facility doesn\u2019t mean you have to keep the asset for seniors exclusively. \n\nMany nursing homes (in Massachusetts specifically), Are closing down because they haven\u2019t seen an increase in the Medicare Medicaid rates since 2007 and they have a operating loss daily of $50 or per bed. \n\nCoupled with the rise of at home care there\u2019s also less demand. These buildings can be converted to multi family units pretty easily considering the plumbing and the HVAC and the electrical run through out tge building as a multi unit would anyway.", "replies": [], "depth": 1}]