I hear of all these great profits that are being made investing in real estate that has a major “business” component, like small assisted living properties; rooming houses; sober living arrangements, etc.  

Everyone else pays for the components  progress bills on the 25th and gets paid on the 10th..

A property profile has at least four components, as listed below.Location - The locations where significant percentages of the target segment are renting today.Property type - What type of properties are they renting today?

@Michael VanThere is o e key missing component to this question, which is the risk factor to achieve those returns.

This is out of an article that should help you get your research started: A taxpayer may not deduct losses sustained in the demolition of buildings and their structural components.

The first involves hiring an engineer or specialist, who meticulously categorizes components to maximize segregation and depreciation acceleration.

What you cannot do is deduct the overall loss, of which depreciation is a component. 

I think the big component is leverage. 

That rental money reinvested into these value add components should theoretically have a 3-5X, or more, return.

However, the value of your labor generally cannot be included in the cost basis for depreciation purposes.Accelerated Depreciation: A cost segregation study would identify components of your property that can be depreciated over shorter periods, such as personal property and land improvements.