Laurel, MD · Member since 2014 · 75 posts · 17 votes
Does anyone have experience with deals in these communities? Care to share your experiences, pros and cons? Please do share. I'm considering a couple of properties to hold and see some potential flips as well. Thx in advance!
San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
11y
I have lived in 2 low-income 55+ buildings in CA. Lived in one in Redding for one year (Redding is too hot!), then moved to Crescent City, CA and live in one now. As a tenant, there is a waiting list for these, and my experience is that they're well-managed and cared for.
These are tax properties, with several different funding types, so some apartments are rented at market and others at different levels/types of funding, and all will accept Section 8 vouchers.
It's big business - lots of baby boomers out there looking for this type of housing. And I swear, you could put one in the middle of nowhere (I looked at one outside of Fresno in the sticks) and you'd have a waiting list - which even the one in Orange Grove, CA had. (Very nice property, just too far out in the sticks for me.)
With 55+, you can have a percentage of tenants who are younger. If you just want seniors, look at the 62+ buildings/communities, then you wouldn't have issues with younger people/families.
Cities often co-fund the projects, if they are done in a dying/dead downtown area. Both of the places I've lived were in old renovated hotels, turned into 55+ housing units in the old downtown areas.
As an owner/manager, you'd have to deal with several govt agencies, audits and inspections, but you'd always have a waiting list, from my experience at least in CA. In other words, if you build it, they will come!
Not sure if that was helpful at all. But, in case you wanted to know the tenants' perspective (for the low-income communities), there you have it.
Laurel, MD · Member since 2014 · 75 posts · 17 votes
11y
Thank you @Account Closedfor that input. It is very helpful. I'm primarily considering the purchase of individual condos/SFH's in these developments and renting them. The demand does seem to be high and units are hard to come by in some places. I would guess that a more mature tenant in/heading to retirement would, in theory, be a little less hassle. Turnover is probably low as well. I'm curious also, however, about potential problems with tenements whose benefits run out, have medical issues and can't make payments or who pass away and having to deal with estates, probate, etc. Any insight there?
Thank you @Account Closedfor that input. It is very helpful. I'm primarily considering the purchase of individual condos/SFH's in these developments and renting them. The demand does seem to be high and units are hard to come by in some places. I would guess that a more mature tenant in/heading to retirement would, in theory, be a little less hassle. Turnover is probably low as well. I'm curious also, however, about potential problems with tenements whose benefits run out, have medical issues and can't make payments or who pass away and having to deal with estates, probate, etc. Any insight there?
Hi Andraise,
Well, benefits are not very unlikely to run out. Even if they are on disability, once you're over 55, Social Security pretty much figures you're not going to be cured or rehabilitated.
As far as medical issues or tenants passing away - I'd expect benefits to continue for someone with medical issues, and if they went into nursing home or hospital or passed away, you'd be dealing with evicting. You'd have to look into how to terminate tenancy if the tenant died or went into hospital. If they went into hospital, and quit paying rent, you'd have to deal with their property. But it seems like this would be the same as if any tenant left with property in the rental.
You would probably have to deal with this more often in 55+ housing, but I still think overall, you'd have less evictions, etc.