Markets and property types
Why 55+ Multifamily Is the Best Asset Class I Can Buy Right Now
Inside an 80-unit 55+ LIHTC community in Abilene, Texas we're buying for $4.2 million, and the four reasons this asset class beats RV parks and single family.
I'm standing in yet another office in Abilene that's about to be mine. It's inspection day on what may be one of the best deals we've ever done, and once again it's a 55+ property in Texas. So let me explain exactly why we keep buying so much 55+, and why I think it's going to continue to be the strongest multifamily asset you can own.
Related reading: Why My 44-Unit 55+ Community Is My Best Texas Deal
This particular building is 80 units in Abilene. We already own a 144-unit out here plus another 80-unit 55+ community. We're buying this one for $4.2 million, we're buying it stupidly low down, and the inspection is going phenomenally.
Why Not the Asset Classes Everyone Is Marketing
Right now I see a ton of marketing for single family (which for some reason is still a thing) and for RV parks and mobile home parks. The pitch is always that those are the way to buy creative and low down.
Single family is pretty self-explanatory for most people. It's very difficult to scale and very difficult to cash flow. If your business doesn't cash flow, I don't think that's a business you should be in.
Related reading: Why Single-Family Rentals Stopped Working (And What to Buy Instead)
RV parks and mobile homes are a different story. People love them because you can get so creative on them. Do you know why you can get so creative on them? There are so many grossly mismanaged parks. Not always (some of them are really nice) but they tend to have rougher tenants. The problems you're solving at that type of property are what merit the higher return.
So if you're doing the RV park and mobile home thing, it's not that you can't do it. It's that it's going to be more work for the amount of money you're making. If what you want is the highest income with the highest passivity and the highest demand, this is what it looks like instead. And frankly, this is a lot sexier than most RV parks and mobile home parks. Just saying.
Reason One: Boomers Are Turning 80
In 2026, the oldest baby boomers are turning 80. I see that demographic shift as one reason to examine demand for communities serving older residents.
Every single 55+ community I currently own is at 100% occupancy. The building I'm buying right now is at 99%: I just walked through a unit that's moving out, so call it 98-something percent. You get the point. They're all fully occupied. There's a ton of demand and they can't get enough of these. The waitlist on these properties goes on forever, because the demand is huge and growing.
And I've noticed they don't build a ton of these. Growing demand against limited new supply is about as simple as the math gets.
Reason Two: Almost Nobody Is Competing for Them
Some investors see a 55+ restriction and move on because they aren't familiar with it. I prefer to understand the operating requirements and the local demand before deciding whether to pursue the property.
Buy as many of these as you can possibly find where they cash flow. If you have population growth in your market, snag buildings like this. There's way less competition.
One thing to be clear on: this is not assisted living. Assisted living is its own business, and I have friends who do amazingly at it. It's just not my business. As a multifamily guy, this is normal multifamily. Your tenants rarely move out. As you'd imagine, with an older resident base you do have a slightly higher mortality rate, so you'll see some turnover. But if you're providing great places to live, your tenants are generally really calm and usually very respectful to the property.
Reason Three: These Tenants Already Know How to Be Tenants
By the time somebody is 55 years old and still renting (which is totally fine, a lot of people rent their entire lives) many of them are on a fixed income, and all of them have learned how to be tenants by this point in their lives.
They're through the part of being a trashy tenant and needing to get evicted. They know the program. What you end up with is really clean, really low-maintenance properties like the one behind me.
Reason Four: The Pricing Has Been Absolutely Dumb
If you need a fourth reason, it's price. I find more opportunity in this asset class from a pricing standpoint than I do in anything else. And when pricing is that favorable, your ability to buy them low down (conventionally or creatively) goes way up.
That's a point worth sitting with. Creative finance isn't magic; it works best when the underlying numbers give you room. In 55+, the numbers have consistently given us room.
What This Specific Deal Looks Like
This is a LIHTC property. Not all 55+ has to be, but LIHTC means there's an income restriction on who can live here.
Here's why that's a feature, not a bug. If you're someone on fixed income, this could be the perfect property for you. It doesn't mean you're a traditionally low-income individual. It might just mean you're done with your career and you've downsized to a place that makes sense, and because you're done working, your fixed income puts you in a lower bracket than you used to be in. That qualifies you for housing like this.
The qualifications run at 30%, 50%, or 60% of area median income. If you're below that and you're 55 (which describes an enormous number of people in retirement) you can qualify to live somewhere like this. That's exactly why the waiting list is so huge.
So when a property is both LIHTC and 55+, you typically get the best of the best of the so-called lower income tenants.
This will also be our first property with an elevator, which I'm honestly a little excited about. I know it's an additional expense, but having one in the portfolio is going to be a good learning experience. At around 600 units, soon to be about 800 after we close Longview, I don't run into a whole lot of new flavors anymore. I've just never had an elevator.
The two-story building here has it, and that side is more of your traditional senior living layout: long hallways, really easy access. The other side is townhome-style apartments.
Becoming the Most Obvious Buyer
Because this is LIHTC and 55+, the buyer pool is pretty restricted. That means you have to do a little bit of work, or do a few transactions, to become the most obvious buyer for the property.
Once you buy one or two of these, everyone and their sister wants to sell to you, because you're the guy buying them. That's a real advantage right now. People retiring out of real estate, and people who overbought and are actively losing their real estate in this market, are transferring their buildings to me.
Specializing is the shortcut. You don't need to be the best-capitalized buyer in the market. You need to be the one the seller thinks of first.
Key Takeaways
- Demand for 55+ is climbing as the first boomers turn 80, and very little new product is being built. Every 55+ community I own runs at or near 100% occupancy with a long waitlist.
- Most investors skip the asset class because the label makes them unsure, which means far less competition for you.
- 55+ is not assisted living. It's normal multifamily with calmer, longer-staying, lower-maintenance tenants.
- Pricing in this class has consistently been the most favorable I see anywhere, which makes buying low down far more achievable.
- LIHTC plus 55+ produces a huge qualified applicant pool from retirees on fixed income.
- Buy one or two, and sellers start coming to you because you've become the obvious buyer.
We're going to blow through 1,000 rental units, which is crazy: when I started, my goal was to get to 100. As a reminder, unit count is a really dumb metric to measure. But I'll tell you this: a thousand units that all cash flow makes a lot more than any duplexes or single family you can save up for. And on appreciation plus cash flow, it blows RV parks and mobile home parks out of the water. It can match or exceed them on cash flow, and it will always destroy them on appreciation.
If you're seeing deals like this in your market and you don't know how to buy them yet, watch the full walkthrough above for the interior tour and the rest of the numbers. "The Book on Creative Real Estate" goes through the actual deals we did and how we learned each creative clause we've used: it's free if you cover shipping through resources listed with the episode, or you can find it on Amazon. There's also a free course on getting started in multifamily, a free community with a deal calculator, and mentorship details on the site.
Read the episode transcript
0:00 Hello friends. I'm in yet another office 0:03 in Abene that is about who mine is. It 0:04 is an inspection day and it is going 0:06 insanely well on what may be one of the 0:08 best deals we've ever done. But yet 0:10 again, it's 55 plus in Texas. On today's 0:13 video, I'm going to go through exactly 0:15 why we're buying so much 55 plus and why 0:18 I think it's going to continue to be the 0:20 strongest multif family asset. First of 0:22 all, let's talk about some of the other 0:23 assets that are being marketed popularly 0:25 right now, which is single family. I'm 0:28 seeing a ton of marketing for for some 0:30 reason that's still a thing and RV parks 0:33 and mobile home parks. Everyone's saying 0:34 this is the way to buy things creative 0:36 and low down which by the way we're 0:37 buying this thing stupidly low down. But 0:40 if you can buy any asset class right 0:41 now, I would say class B multif family 0:45 55 plus. Now, first of all, why not RV 0:47 parks and single family? I think single 0:49 family is pretty self-explanatory for 0:50 most. Very difficult to scale, very 0:52 difficult to cash flow. If your business 0:54 doesn't cash flow, I don't think that's 0:55 a business you should be in. The RV 0:57 parks and mobile homes, people love them 0:58 because you can get so creative on them. 1:00 You know why you can get so creative? 1:01 There's so many grossly mismanaged 1:03 parks. They tend to, not always, some of 1:05 them are really nice, but they tend to 1:07 have rougher tenants. The problems that 1:08 you're solving at that type of property 1:10 merit the higher return. So, if you're 1:12 doing the RV park and the mobile thing, 1:13 it's not that you can't do it. It's 1:15 going to be more work for the amount of 1:16 money that you're doing. If you want the 1:18 highest income with the highest 1:20 passivity, with the highest demand, this 1:22 is what it looks like. First of all, 1:24 this is a lot sexier than most RV parks 1:26 and mobile home parks. Just saying. This 1:28 is 80 units. This is in Abalene, Texas. 1:30 We own 144 unit out here and another 1:33 80unit 55 plus community. Why are these 1:36 so awesome? Reason number one, boomers 1:38 are turning 80. Right now, as I'm 1:40 filming this video, the first boomers 1:42 are turning 80 years old. Uh, what does 1:44 this mean? Demand is going to go up 1:46 substantially for 55 plus communities. 1:48 Every single 55 plus community that I 1:50 currently own is at 100% occupancy. And 1:53 the building right here that we're 1:54 buying, guess what the occupancy is? 1:55 It's 99%. I just walked through a unit 1:57 that is moving out. So, I guess it's 1:59 like 98 whatever percent. You get the 2:01 point. They're all fully occupied. 2:02 There's a ton of demand. They can't get 2:05 enough of these. The weight list on 2:06 these properties goes on forever because 2:09 the demand is huge and growing. And I've 2:12 noticed they don't build a ton of these. 2:13 Reason number two, a ton of people see 2:15 55 plus and they feel unsure and they 2:17 just don't buy them. I don't think 2:18 anyone's out here talking about this, 2:20 which I should probably take into 2:21 consideration because I want to buy all 2:23 these before you do. That being said, 2:24 I've already said it, so you're watching 2:25 the video, so congratulations. Buy as 2:28 many of these as you can possibly find 2:30 where they cash flow cuz demand is going 2:32 up. If you have population growth in 2:33 your market, snag buildings like this, 2:35 way less competition, and it's not 2:37 assisted living. Now, assisted living is 2:39 its own business, and I have some 2:40 friends who do amazing and it's just not 2:42 my business. As a multif family guy, 2:44 this is normal multif family. Your 2:46 tenants rarely move out. Uh, as you can 2:47 imagine, if they're older, you do have a 2:49 slightly higher mortality rate. So, 2:51 you'll have some turnover. However, 2:53 providing great places to live, your 2:54 tenants are generally really calm. 2:56 They're usually very respectful to the 2:57 property. Which brings me to reason 2:58 number three. Your tenants by the time 3:00 they're 55 years old. If they are still 3:02 renting, which is totally fine. A lot of 3:03 people rent their entire lives. If 3:05 they're renting, many of them are on 3:06 fixed income. All of them have learned 3:08 how to be tenants by this point of their 3:10 lives. They're through the part of being 3:11 a trashy tenant, needing to get evicted. 3:13 They kind of know the program. So you 3:15 end up with really clean, really 3:16 lowmaintenance properties like the one 3:19 behind me. And if you need a fourth 3:20 reason, the pricing on these things 3:22 consistently has been absolutely dumb. I 3:24 find more opportunity in this asset 3:26 class on a price standpoint than I do 3:28 anything else, which means 3:29 conventionally or creative, your ability 3:31 to buy these low down is way higher. 3:32 Now, this particular deal, let's talk 3:34 about this transaction itself. 55 plus 3:36 Abling, Texas. This is a LITC property. 3:38 Not all 55 needs to be, but that means 3:40 that it has an income restriction. And 3:41 so if you happen to be someone on fixed 3:43 income, this could be the perfect 3:44 property for you. It doesn't mean you're 3:46 a traditionally low-income individual, 3:48 it just might mean that you're done with 3:49 your career, you've downsized to a place 3:51 that makes sense. And because you're 3:52 done with your career, your fixed income 3:54 might put you in a lower income bracket 3:56 than you used to be in, which means you 3:58 can qualify for housing like this. So 3:59 when it's lit and 55 plus, you typically 4:02 get the best of the best of the quote 4:05 unquote lower income tenants. The 4:07 qualifications for these are either 30, 4:09 50, or 60% of the area median income. 4:12 So, if you are below that and you're 55, 4:14 which is a ton of people in their 4:16 retirement, you can qualify to live 4:17 somewhere like this, which is why the 4:18 waiting list is absolutely huge. And 4:21 we're buying this deal for $4.2 million. 4:23 We're doing the inspection today and it 4:25 is going phenomenally. This also be our 4:28 first property that comes with an 4:29 elevator, which I'm kind of excited 4:30 about. I know it's an additional 4:31 expense, but just having one in the 4:33 portfolio, it's going to be a good 4:34 learning experience. I don't get a whole 4:36 lot of new flavors anymore. 600 uh units 4:39 about to be 800 after we close Long 4:41 View, Texas. But this many units in 4:42 doing real estate for as long as I have 4:44 been, I don't run into a whole lot of 4:45 new. I just have never run into an 4:47 elevator. So, we have one in this 4:49 building behind me, the twotory, which 4:50 is a really cool design. The twotory has 4:53 the elevator. It's more of your 4:55 traditional senior living where they 4:57 have long hallways, really, really easy 4:59 access. And on the other side, you have 5:01 the town home style apartments that 5:03 we've been walking through. So, I'm 5:04 going to take you to the interior of the 5:05 building, show you guys what this 5:07 actually looks like and why they make so 5:09 much money. Follow me. So, why is this 5:11 deal so good? But this being LITC M35 5:13 plus, your buyer pool is pretty 5:14 restricted, which means you have to do a 5:15 little bit of work or do a few 5:16 transactions to become the most obvious 5:19 buyer for the property. Once you buy one 5:21 or two of these bad boys, everyone in 5:23 their sister wants to sell to you cuz 5:25 you're the guy buying them. If you have 5:26 people who are retiring from real estate 5:28 or people who overbought their real 5:29 estate and are actively losing it like 5:30 we're seeing in this market, a lot of 5:32 people are transferring their buildings 5:33 to me. We're buying a ton of these uh 5:36 more to come on more deals we're doing, 5:38 but we'll blow through 1,000 rental 5:41 units, which is crazy. When I started, 5:43 my goal is to get to 100. As a reminder, 5:45 unit count is a super dumb metric to 5:47 measure. However, I will tell you this. 5:49 A thousand units when all of them cash 5:51 flow makes a lot more than any duplexes 5:54 or single family that you can save up 5:56 for. And if you're looking at it at an 5:57 appreciation plus cash flow standpoint 5:59 blows RV parks and mobile parts out of 6:01 the water. It can match them or exceed 6:04 them in cash flow, but will always 6:07 destroy them in appreciation. As you're 6:09 seeing deals like this in your market, 6:10 you don't know how to buy them yet. I 6:12 wrote a book called The Book on Creative 6:14 Real Estate. I'm actually giving it to 6:15 you for free. just cover the shipping. 6:17 But there's a link below in the 6:19 description. You can check it out. Snag 6:21 my book there. Or if you want to find it 6:23 on Amazon, you can do that, too. The 6:25 book on creative real estate by me, 6:26 Christian Ogood. I go through the actual 6:28 deals that we did and how we learned 6:30 each of the creative clauses that we 6:32 used throughout my real estate career. 6:34 So that if you're buying beyond the 6:35 money you have in your bank account 6:36 right now, you can do it in any deal 6:38 structure, creative equity or finance. 6:41 Check it out. Link is below the book on 6:43 creative real estate. So, if you are 6:45 looking for what is the best asset that 6:47 you can possibly buy, my argument right 6:50 now in today's market, 55 plus, as large 6:53 as you can possibly buy in your market, 6:56 these deals absolutely rock.
Put these ideas to work.
Get support from Christian and the coaching team with your next multifamily deal. See how the mentorship works or start your application.
Apply Now
