We have 10 acres on the edge of a small town that's located within 35-40 minutes of San Antonio.

It's a really nice place with lots of big live oaks and offers some nice natural appeal.

I have an idea to do a gated, exclusive, senior living property with either cottages, duplexes, or 4-plexes.

The plan would be to have it exclusively available for seniors who either need to downsize out of their home, or maybe they need to move closer to their adult children but they can't live with them.

It would be turn-key, fully furnished, all bills paid, cleaning services provided… to make it as simple as possible.

My theory is that because the units would be safe and secure in a gated senior community, you could charge a premium rent.

At most I think we could put 5 total 4-plexes on the property without it being too crowded. If we had to do individual cottages we could do maybe 12 at the very most.


Does anyone have any experience with something like this?
Does it sound like a terrible idea?

Any advice is appreciated. TIA

Concept is great. You need to figure out the costs to the user, but also what kind of profit margins you need. Did you run the numbers?

All good points. I'll address a few.

I am thinking of the seniors angle because I feel like they will be lower headache than short term rentals like AirBnB.

Definitely 1 story on everything for folks with mobility issues.

5 minutes from a clinic. 25-45 minutes from real hospital depending on need.

I absolutely am going to have to partner with a builder/developer on this to have some cash.


In our area, crappy old apartments are going for $1500/month. 3/2 single wides are renting for $1800-$2000. Something turn-key and secure like this should be able to get $3000+ …. Or does that sound crazy?

AI output for ya!

Here are some considerations and advice based on your concept:

1. Market Research:
Demand Analysis: Assess the local demand for senior housing. Proximity to San Antonio is advantageous, but understanding the specific needs and preferences of seniors in your area is crucial.
Competition: Investigate existing senior living communities nearby to identify gaps in the market that your development could fill.
2. Regulatory Compliance:
Zoning Laws: Verify that your property is zoned for residential development of this nature. You may need to apply for rezoning or special permits.
Age Restrictions: If you plan to make it an age-restricted community (e.g., 55+), ensure compliance with the Housing for Older Persons Act (HOPA).
3. Design and Amenities:
Layout Planning: With the natural beauty of your land, consider designs that preserve the live oaks and natural appeal. This can be a significant selling point.
Housing Options: Decide between cottages, duplexes, or fourplexes based on demand, cost, and the desired community feel. Individual cottages offer more privacy but are costlier per unit.
Accessibility: Ensure all units are ADA-compliant with features like zero-step entries, wide doorways, and grab bars.
Community Features: Include amenities like walking paths, a community center, or gardens to enhance residents' quality of life.
4. Services Offered:
Turn-Key Living: Fully furnished units with utilities and cleaning services included are highly attractive but will affect your pricing structure.
Additional Services: Consider partnerships with healthcare providers for on-site wellness checks or transportation services for shopping and appointments.
5. Financial Planning:
Cost Analysis: Develop a detailed budget covering construction, maintenance, staffing, and services.
Pricing Strategy: While premium rents are possible, they must reflect the value provided and be competitive within the market.
Financing Options: Explore funding sources like loans, investors, or government programs that support senior housing developments.
6. Security Measures:
Gated Access: A secure environment is a significant draw. Invest in reliable gate systems and possibly security personnel.
Emergency Systems: Install emergency response systems within units and throughout the community.
7. Legal Considerations:
Contracts and Policies: Draft clear rental agreements outlining services, policies, and residents' responsibilities.
Insurance: Obtain adequate insurance coverage for the property and services offered.
8. Marketing Strategy:
Targeted Advertising: Use channels that reach seniors and their families, such as local newspapers, online platforms, and partnerships with senior organizations.
Open Houses and Tours: Host events to showcase the property and its amenities.
9. Sustainability:
Energy Efficiency: Incorporate green building practices to reduce operating costs and appeal to environmentally conscious residents.
Maintenance: Plan for long-term upkeep of both the buildings and the natural landscape.
10. Professional Guidance:
Consult Experts: Engage with architects, senior living consultants, and legal advisors experienced in this field.
Community Feedback: Consider holding community meetings to gather input and build support.

Experience and Advice:

While I don't have personal experiences, many successful senior living communities share common factors: they meet a clear need, offer valuable services, and foster a sense of community. Potential challenges include high initial investment costs, ongoing operational expenses, and the need to maintain high occupancy rates to remain profitable.

Does it sound like a terrible idea?

Not at all. Your concept addresses a genuine need and leverages the appealing features of your property. With careful planning and execution, it could become a sought-after community for seniors in your area.

Final Thoughts:

Due Diligence: Thorough research and planning are essential. Understand the risks and have contingency plans.
Community Impact: Consider how your development will affect the local community and environment positively.
Scalability: Think about future expansion or additional services that could enhance the community over time.

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Senior living often has lots of amenities….pools, clubhouses, exercise classes, walking trails, etc. It's hard to provide amenities with small numbers.

Having said that, your density is very low. You could easily put 50 units on 10 acres.

I certainly think a clubhouse or social area would be in the cards and definitely could do some walking trails.

My idea on numbers is to keep it "exclusive" and quiet to demand premium rents while keeping my startup and input costs down. I don't know if that theory works in practice.

Troglodyte said:

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What makes it "exclusive"? Just having a small number won't get you premiums. To me "exclusive" would mean high end finish outs and state of the art amenities.

I would also avoid the furnished unit. If you are charging premium rents, you getting wealth retirees. They will want their own finish out. I have a hard time seeing furnished units and exclusive together.

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I'm probably using "exclusive" to emphasize the small number of units and the security of the gated community. Maybe need to come up with a different term.

Good point on furnishings. Might be an unnecessary expense on our end. I think my thought process on the fully furnished is that there might be some wealthy people who are willing to pay extra for not having to put forth much effort. They might like the turn-key aspect of all bills included, furnished, cleaning services, etc….

So a lot of the people in these places require regular nursing care so that is something you have to take in to account. is there a contingent of nurses nearby or would you employ them? I noticed that where my grandmother lives all doorways have metal jambs to accommodate wheelchairs. Both facilities I have visited have kitchens and cafeterias onsite. You'll need to staff those as well. My grandmothers last one was in cypress and they have a ton of vacancies after a flood. They were only refurbishing as required and haven't had to do that many. Neither of her units have been finished.

Troglodyte said:

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Having said that, your density is very low. You could easily put 50 units on 10 acres.

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If they're one-story??

NoahAg said:

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Troglodyte said:

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Having said that, your density is very low. You could easily put 50 units on 10 acres.

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If they're one-story??

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Yep. You can do single family detached at 4-5/acre. Duplexes would be 6-8/acre. Townhomes up to 20/acre.

I like the idea but worry about your location.

25 minutes is too far for a hospital.

How many people live within 15 minutes of the property? If Im helping elderly family find a place to live, Im going to want it within 10-15 minutes of where I live.

True about the hospital.
The property is right within city limits, so there are lots of people nearby.

A few more thoughts -

I think the true test would be when you try to line up your development/operator partner. My guess is that they may be skittish about your location. They would usually do market research on the surrounding area, proximity to health care and other amenities, availability of labor, etc., and selecting the actual plot of land would be one of the last steps (it's probably one of the less important variables determining success, to be truthful).

Hey - we've all done this. Come up with a use for your land or some land you think has value. I do this all the time. The truth is that the things that you think have value may not align with what the experienced partner believes. The great trees and scenic vistas could be detriments for them being able to use the land the way they want and limit their ability to monetize their investment.

BUT, you never know until you talk to some people. If you're willing to put up a substantial part of the capital to make it work, the odds improve a lot. If you want the partner or a bank to foot most of the bill, you shouldn't get your hopes up. I've been down this road before - not everyone shares your vision. In any case, GOOD LUCK! let us know how it goes...

A lot of good information. I had an attorney friend and he and I were looking at doing something similar, though on about 5 acres. There was a similar facility in our home town, and it had a waiting list all the time. We were talking about doing something similar to it, gated, all maintenance and lawn care taken care of, etc. Our thought process was that typically the husband dies, his widow lives in a fully paid for 3,500 square foot home, but only uses a kitchen, living room, bedroom, and one bathroom.

At the time we discussed it, I'd say most of these homes could have been sold for $350,000 or so which would generate quite a pile of money for them to do things they wanted to do and to rent a place in our development. But he was always busy with his law practice and I was always busy with my CPA practice, so we never proceeded with it.

For these types of people, everything would need to be one story and you have discussed access to medical care and hospitals. Our property would have been about four blocks from a hospital, though it was small. Others mentioned a cafeteria and I have seen some like that and that is probably more important to the really old people. The one in our town did not have a cafeteria, but rather than a bunch of 80 or 90 year olds, most of the tenants were single women in their late 60s to late 70s. (He and I were both born here and grew up here so knew most everyone.)

As others have mentioned, I would try to avoid taking on a co-owner. You could always start small, build four units and see if you can get them leased up. Design your layout so that the first four or so are closest to the road, which means less cost in terms of concrete for roads, etc. And, of course, allow for expansion if it goes well.

Good luck to you on this!

Thank you, everyone for the input. This gives me some stuff to chew on.

The description of your property and proximity to a bigger city reminds me of this place. May be worth considering something like this.

https://www.gatheringoaksretreat.com/

Yep, wedding and retreat venue was the first thing that comes to mind with this type of space.

You probably need to partner up with someone who has done senior living.

There are just so many expectations that come with senior living. For example, what amenities are you offering? If specifically for seniors then there is an expectation that someone is on location 24/7/365 to handle emergencies. In a senior center, emergencies mean everything from pooping their pants to heart attack, to the cable not working.

Banks are going to be VERY hesitant to work with you if you haven't done this before. Once you label it "senior" a whole lot of laws start popping up.


On the other hand, maybe you are just wanting to make a "neighborhood" with deed restrictions on age. OK, but why would you want to cut out 75% of possible buyers? Why would a senior want to live there over some other 2/2 house knowing there aren't any senior living advantages and knowing it will be harder to sell with the restrictions?


Dude, I think you are overthinking this. Look at the market right now. If you can build crappy 1400 sq ft 3/2's on your 10 acres you can sell them all before ground is even broken with a 30-40% margin. Why make it 10x more difficult by making it senior?

Quote:

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Does it sound like a terrible idea?

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Going to take a long time to get your money back IMO.
To simplify, let's just say you'll build rent houses instead of homes for seniors. You need to pay engineers, permits, a site development contractor to do roads, drainage, electrical, etc. Homebuilders to construct the houses.
.3 acre lots, plus road infrastructure & a small neighborhood green space park.
18-20 lots with a 2,000 SF houses @ 275.00/SF= 10 million dollars worth of real estate easily.
No idea on the roads & utilities, I would think another million at least, probably more.
Obviously this is highly variable due to finish out costs, but you are definitely in the 5 million dollar+ range easily.

Then you get to pay realtors, maintenance, etc.

Ask yourself how much could I make if I just put that money in the market? How much less of a headache would that be?

Put some bees on the place & get an Ag exemption or lease it out for grazing to someone local. Dig a stock tank, put some bass in it. Take family fishing and hunting. Build a little cabin or put a trailer on it.
JMO.

I've bounced around ideas like this a ton. If you have a lot of working capital, are young enough & have time and energy... perhaps building a subdivision is the right thing.

Agree with the above. It's not going to pencil out to any significant returns in this environment, if at all. Your best bet would be a dense BTR development or the RV park idea mentioned above. Throw in some boat and RV storage to juice other income.

Agree with above - RV parks are so popular right now. A nice one & the right exposure can really make money.

Check out these 2:

https://therangevtr.com/
https://www.deadcatranchtx.com/

edit to add: When you get tired of running it, you'd have a fantastic property to retire to....

While not a terrible idea, I think you'll need to charge at least $5k+/mo, perhaps much more to cash flow due to the initial capital investment and low density.

If you aren't on city utilities you'll be limited to the number of units you can have per acre on septic, or be forced to spend a lot of money as previously mentioned to bring utilities to the property.

Something I haven't seen mentioned is the insurance costs and availability, I have personally dealt with underwriters having aversion to covering property just outside of San Antonio, they are starting to see it as a big wildfire risk. Property insurance is going to be high and possibly difficult to obtain.

I think the high end RV park makes a lot more sense, and much less up front capital, leaves the property more flexible for future use.

Very good information, and I think you are generally on track. To dig in a little more from the business viability standpoint, if the build-out is similar to what you project, figure a total construction cost of $6 million, monthly P&I is going to be something north of $25,000/month. Throw taxes on the assessed value, plus insurance, and add another $10k, minimum, to your monthly outlay. I can see your monthly expenses, including servicing debt, in the $50-60k per month range. So, doing some quick math on the project, where do you see your profit at the end of each month? And does that meet an ROI that you are happy with?

schwack schwack said:

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Agree with above - RV parks are so popular right now. A nice one & the right exposure can really make money.

Check out these 2:

https://therangevtr.com/
https://www.deadcatranchtx.com/

edit to add: When you get tired of running it, you'd have a fantastic property to retire to....

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Those two are very high end and would cost millions to put together. One (maybe the other as well, just didn't notice) had restaurant facilities, which i would avoid at all costs.

Though RV parks can be money makers, more than a few are money pits. The first thing an investor needs to ask himself or herself is why would people want to be where the RV park is? Jobs? And for how long the job demand is going to last (for example a 3 year construction project). Vacation? What is the nearby attraction, beach, lake, theme park, etc. that draw people to the area?

I have seen more than a few people build a park on family land, i.e., real estate they already own, and suffer from low occupancy due to it not being located where very many people wanted to be.

Like mobile home parks, some cities and counties don't really want any more than they already have and discourage any more coming in, but others are more receptive.

I just posted 2 examples to show what could be an idea. Don't have to go whole hog to begin with & yes, there needs to be some bigger city, local draw and/or just a beautiful, rural location. These examples aren't mobile home parks for long term stays where you are right next to the next person - these type offer more of a camping experience.

We know the owners of one of them & they started small. They had an RV and saw a need for something close to go to to "escape" the big city - Dallas - when they just wanted a quick trip. They cleared nice, private spots on the property, set up pads & utilities and added the incredible amenities as they grew & word spread. Yes, they added walking trails, a "cocktail" airstream, a restaurant, made a pond & stocked it, a pool, etc. and as they did, they got more business. It's now a destination stop for long range travelers with their own RVs and for locals wanting a nice, close place to stay "locally" in the vintage RVs they have furnished onsite.

Great point about access to medical care. I work with a lot of seniors and my God some of them see 5 or more doctors a week it seems.

Troglodyte said:

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What makes it "exclusive"? Just having a small number won't get you premiums. To me "exclusive" would mean high end finish outs and state of the art amenities.

I would also avoid the furnished unit. If you are charging premium rents, you getting wealth retirees. They will want their own finish out. I have a hard time seeing furnished units and exclusive together.

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Diddy parties.