Depending on the type of "group home" (drug/alcohol rehab, handicapped, mental illness, elderly, etc.) you have other laws to make sure you comply with, and great point by David D Painter re insurance.

Under our current legal theories and court decisions, a business to business transaction neither party owes anything to the other; in a consumer to business transaction the business owes the consumer honesty, fair dealing, and possibly agency (not to use superior knowledge to the detriment of the consumer).From an ethical view point here's how I look at it, if it's not something I would want my elderly parents involved in, then I wouldn't want to do it to anyone else.

Same with dealing with the elderly and pre-foreclosure.   

Your tenants are elderly people with real world medical problems. how do you provide for them, and build a thriving business while dealing with all the management issues?

Of course you'd have to worry about senile elders doing the same thing!

You might be an REI if... you see an elderly couple working out in the yard at a duplex down the street and you skip your lunch break to talk to them about a land contract and get their contact info.

Once my home is complete I will open care homes for the elderly which provides the relevant staffing.At the moment my spend of about $300K has already more than doubled due to capital appreciation.

Unless financed in-house, buyers would not be able to get loans if they don't own the land.To make it all more interesting, the elderly sellers are willing to owner finance.I'd like to hear from others who have developed a property like this and to learn from your experience.  

I have cried on the phone with some of my elderly flat fee customers (some of which became good friends and have already passed away); cried and suffered because they could barely sale the house, pay ONLY 2.5% commission and break even - you obviously wouldn't take that customer ... but I do and give them peace of mind in difficult times.

I know when funds are needed for elder care having assets and cash aren't always an advantage.