After thinking aloud and speaking to baby boomers within my family - just wondering whether investors have found success in investing in multifamily properties that are restricted to those 55+....specifically 3+ units. I'm not talking assisted living or any kind of housing with any level of nursing/chore care. Simply properties which are only rented to independent seniors. My mom, who lived in San Diego, often talks about the variety and number of properties in that area specifically for active/independent seniors. Though MI is obviously not the draw CA is (enticing people of all ages to move there)....we do have an aging pop and our own large pop of baby boomers so just wondering whether anyone has found success in this arena in MI? If so, what has your experience been like and what strategies have you had to employ to find success?
@Jam Jackson Thanks for posting! Great topic! It has also being on my mind to do something like that in my home state - NJ. So I would also be curios what people have to say about it in general. Thanks again for your question!
Anything to do with seniors from housing to funerals is guaranteed profit. Low risk and generally good quality market.
I rent to adult only and have a large number of seniors. Best possible tenant base assuming you steer well clear of C class and any one on government assistance.
Todays 55+ have the money and are of a generation that understands the value of money. Assuming they have not spent their life on welfare.
As a baby boomer, I realize the need of such housing. As a prospective investor in Mi, I have considered it. Seniors are more reliable, and take care of the property more.
After 6 years of buying 50 year old SFH's and fixing them up and renting them I realized that I was tired of repairing old crappy houses that were poorly built in the first place. I also noticed that my best tenants were older folks--they didn't move often, took care of the properties, didn't throw wild parties and actually paid their rent on time. So 14 years ago I designed and built a 4-plex for 55+ tenants that takes many of their special needs into account (36" doorways, easy access large showers, etc.). Last week I finished my 53rd unit and I have 8 more under construction with 30 units planned for next year. My occupancy rate has been over 99% and I have had exactly ONE eviction in these 14 years. All rents are required to be auto-drafted from tenant's accounts and they don't have a problem with that--on the 4th of every month I log into my online account and with the strokes of a few buttons, all rents are drafted into my account. These apartments could be built anywhere in America, look around you--the whole country's getting older, not just in retirement areas. The other beauty of it is that I build high quality construction, 2 x 6 exterior walls with blown in foam, 5/8's decking, architectural shingles, upgraded fixtures, expensive toilets that never clog, low-maintenance exteriors, etc. This keeps my repair costs and property management needs to a bare minimum. I highly recommend finding a way to cater to the needs of seniors where you are, it's a great business and you can feel good about providing quality housing to people who've worked hard their whole lives at a reasonable price.
Thanks for the replies everyone. I'm going to continue looking into this as a possible investment option. Still hoping there are some folks from MI willing to share their experiences as well!
@Jam Jackson any new developments on this topic? Love to hear any updates. I too am looking to delve into this market in Michigan. Thanks!