A sector of the Multifamily market which is showing strong growth and opportunities is Senior Housing. The Baby boomer generation is done raising children, so no longer a need for such a large home. With age, unfortunately comes health issues which make climbing stairs a challenge. With retirement comes a limited income, so selling and downsizing their home can offer fewer expenses and a cash-cushion.
Benefits of investing in Senior housing can be numerous:
- They tend to have a proven and solid credit history.
- Their income, often from retirement plans/pension/social security, tends to be reliable and verifiable.
- And, Seniors don’t tend to party like college kids (pun intended. Steve may know a few who do. ? ) They do tend to take good care of their home.
- And, if the Investor is in this phase of life themselves; rather than buying a single family home to replace the large nest they are downsizing from, a “Twin-single” (2-unit one-floor property) can work well. The owner lives in one of the units while enjoying the income from the tenants in the other unit. Then, at such a time the owner needs or chooses to move out of their unit, they can rent their vacated unit to a new tenant and enjoy full income from both units. The Owner/Investor can then reap the full tax benefits from a property now totally committed as an investment property.