Buying house for investment in senior community

Asked by N.c., San Diego, CA Tue Jan 13, 2009

We are considering buying an investment property in senior community in San Diego. Do you know how easy/difficult is to find renters in such communities? How strong is rental market for seniors in San Diego? Thanks a lot.

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Nick Rhea, , San Diego County, CA
Tue Jan 13, 2009
Hello N.c.,

It will be difficult to find something this granular to confirm my comments, but rentals for this segment are scarce and it shouldn't be difficult to find renters. My question for you is why are you focusing on senior housing? Appreciation and rental rates will suffer compared to housing with no restrictions. This will offset your lower acquisiton costs and you will probably end up with a lower ROI.

We specialize in working with real estate investors to help them find the best return for the dollar. We would like to help you.


Nick Rhea, MBA, Broker
Bombora Investments, Inc
2 votes
Chad Basinger, Agent, San Diego, CA
Tue Apr 29, 2014
Hello NC,

You are inquiring about the senior community in 92128, which leads to two 55 plus areas; Oaks North and Seven Oaks. These are both great areas with lots of amenities. It should be noted that you must be 55 or older to live in these places, but you don't have to be 55 to be the owner. The rental market is very competitive and once you find a renter in one of these communities, the trend generally shows that they stay there for a long time. As you know, stability is huge when it comes to rentals. I believe there are great opportunities to be had in the senior communities, just as with any other community, but you need to do your due diligence. There are a plethora of factors that dictate what a property is worth, thus you'll want to make sure you understand them so you can make the best informed decision possible. Obviously, whatever you save on the front end of the transaction will go a long way towards what your investment ultimately earns in the end. Best of luck!


Chad Basinger, REALTOR, CPA, CFP
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0 votes
Barry Shapiro, Agent, Camarillo, CA
Tue Aug 24, 2010
Hello N.C.,
Leisure Village, a senior retirement community consisting of over 2100 homes in Camarillo, CA has an acute shortage of rental properties. The demand is greater than the supply, due partly to the current economy and, in particular, due to the aging baby-boomer demographics. We have represented several tenants in the past few months, along with 'premium priced' rentals in the Village. Depending on your propensity for long-distance management, you may potentially have a positive cash-flow and long term appreciation.
0 votes
Marcie Sands, Agent, Poway, CA
Mon Feb 9, 2009

Another thing to consider is that the properties in the senior areas are less expensive than non-senior areas. If you find a particular community you are interested in Rancho Bernardo or San Diego County, I can run the comps on the current rental rates for you.

All the Best,

Marcie Sands, REALTOR
Senior Real Estate Specialist
Simply The Best Real Estate Company Inc.
(760) 644-1562
0 votes
Kari Shea, Agent, San Diego, CA
Wed Feb 4, 2009

As Marcie stated, this is the fastest growing segment in the market. We have had vast experience with the 55+ communities and would be happy to share the statistics with you. Feel free to e-mail us for details.

Mark and Kari Shea
San Diego Real Estate Professioanls
REO, Investment, Buying and Selling Real Estate
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0 votes
Marcie Sands, Agent, Poway, CA
Wed Feb 4, 2009
Investing in a Senior Neighborhood can be a good investment like all other real estate investments if you find a great location. Do you realize that the fastest growing segment of the real estate market is the 55+? Think of the baby boomer generation, they are now hitting this age bracket! In my area, Rancho Bernardo (San Diego) there are older homes, newer homes and completely remodeled homes. (Not the stereotypical 55+ community). The two senior communities, Oaks North and Seven Oaks have both detached and attached single family homes of all price ranges. Both communities are integrated into Rancho Bernardo, so they are not stand alone, isolated senior areas. For more detailed statistics on a particular senior community, in order to figure your return on investment, feel free to contact me or your agent.
0 votes
fredeckert, Agent, San Diego, CA
Tue Jan 13, 2009
Nick gave you a fine answer about just looking at a senior community. Consider this too, a restricted senior community is a limited community. While it can be desirable for some, others might find it restrictive and not choose to live there. Buying a nice single story home in a good community might be a better choice and give you more flexability in renters (military, seniors, college students, special needs, etc.). There will be a seminar on buying in San Diego on the 28th of January and you can find out about it at…
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