Anyone Else Using BRRR Strategy in Senior Living Niche ?

Question

I see a lot of people using the BRRR strategy on single family homes. Has anyone else used the BRRR strategy for senior living in large residential properties? I found financing to be very difficult to acquire upfront on the home version of senior living and after 10 years we’re approaching the 200+ bed market to finally get to a refinance stage . Interesting when you have each bed renting for $6,000+ each month with 10-20 residents per home. I’d like to continue to scale once our refinance is complete.

Mayo Gilfurt · Answer

Senior living BRRRR is a very different animal than traditional SFR or small multifamily. Most lenders aren’t underwriting it purely as real estate — they’re underwriting operations, staffing, licensing, and census stability, which is why acquisition financing is often the hardest part.

On the refi side, what typically unlocks capital isn’t just NOI, but seasoned census, operator track record, and documented margins once the platform is stabilized. That’s usually when traditional DSCR-style constraints loosen and more institutional capital shows up.

Curious — on your upcoming refinance, are lenders underwriting primarily off trailing operating statements and census history, or are they still pushing for conservative real estate assumptions?

Joshua Kavadi · Answer

thanks Mitch for the insight . I want to invest in the senior facility in GA . I have never did it but would like to start this year . any thought how to take a first step.

thanks for sharing . Joshua

Mitch Conrad · Answer

My company has 22 residential assisted living homes and 4 commercial senior living communities.  I've used several strategies for acquiring senior living properties.  One of my favorites is private financing with a seller carry to cover my down payment and then refinancing into an SBA loan or bank loan after renovation and stabilization.  I've even converted a single-family home to a residential assisted living property using a hard money loan and then refinancing into an SBA loan.  Another strategy that works for both residential and commercial senior living is working with a partner who purchases the properties and gives my company a lease-option to operate.  We usually negotiate a renovation budget into the deal which increases the monthly rent payments and the final option price but we are able to control a property with little or no money into the deal.  After the renovation is complete and the property is stabilized, we refinance with a regional bank.  Since we have been operators of the property for at least three years under the terms of the lease-option, some banks are willing to treat the option purchase like a refinance which allows us to use the equity to acquire the property requiring little or no money down and sometimes even cash out because of the increase in equity.  For the larger properties with considerable equity, we are looking to exercise the option with a bridge loan to pull cash out and then a year later we can refinance with HUD.

Joshua Kavadi · Answer

thanks Brandon.

Joshua Kavadi · Answer

I am interested in this niche . but How to get started ..thanks for sharing your experience..thanks Joshua

Brandon Schwab · Answer

for beginners, I would recommend joining our facebook group called Assisted Living Investment Group. It's a public group that talks all things senior living with a lot of beginners looking to get into the space.

Spencer Hunt · Answer

Some have successfully used a BRRR-style strategy in senior living but it works differently than with single-family homes. Senior living is treated more like a operating business to lenders focus more on occupancy rates and cash flow before they refinance. For that reason, financing is harder upfront but becomes easier after the property becomes stable.

After you reach 200+ beds, you get into a range where institutional lenders, Housing and Urban Development programs, and other sources can be come available sources for financing. Scaling at this level usually requires strong operating history and professional management infrastructure.

Brandon Schwab · Answer

Appreciate it, thank you for sharing! we just reached 219 beds so we checked the bed count requirement but now we are stabilizing the acquisitions we made late in 25'. Thanks for your feedback!