Investing in Different Types of Real Estate with a Self-Directed IRA: Mobile home parks, senior living residences and nursing homes are among the many alternative assets in this asset class

Published on October 30, 2025

The mobile home market is going strong as more Americans seek affordable housing options or alternative housing that fits their lifestyle. Additionally, senior living facilities and nursing homes are ripe for investment in self-directed IRAs.

In this article, we take a closer look at these real estate assets that provide investors with portfolio diversification and returns that are not correlated with the stock market.

Investing in mobile homes and mobile home parks

Mobile homes (or manufactured homes) are a growing market as rental and home prices soar and mortgage rates remain relatively high. According to Mordor Intelligence:

• The manufactured home market was estimated at $13.74 billion in 2025
• It is projected to grow to $18.92 billion by 2030
• The compound annual growth rate (CAGR) is forecast at 6.61%

(SOURCE: https://www.mordorintelligence.com/industry-reports/united-states-manufactured-homes-market)

Affordability is at the core of this growth. The U.S. Census Bureau reported in 2024 that the median manufactured house price in America was $125,200, representing a cost savings of about 69.5% over purchasing a traditional home.

This asset class provides steady passive revenue for investors. Because it can be expensive to move a mobile home, the parks generally have long-term tenure and low vacancy rates, which make them an attractive investment. Plus, strict zoning laws in many areas make it difficult to develop new mobile home parks, so supply is becoming limited while demand is growing (along with increased lot rents).

Self-directed investors can also use IRA funds to directly purchase a mobile home that will be leased to tenants—but beware the potential of triggering unrelated business income tax (UBIT) if the home is situated on leased land and classified as personal property.

Investors may also issue loans on one or more mobile homes through promissory notes. In that scenario, the SDIRA generates passive income without the burden of property ownership). There are also joint ventures that pool resources to acquire mobile homes or parks, and mobile home park syndications.

As with any self-directed investment, account owners are expected to conduct their full due diligence about investing in mobile homes, including potential risks and expenses such as setup fees, transportation (if relocating an individual home), utility connections, insurance, maintenance, and park fees or community lease agreements.

Investing in the senior residence and nursing home markets

Senior living residences include single-focus residences (such as assisted living) and continuum of care communities that comprise independent living, assisted living and/or memory care facilities as well as nursing homes on one campus.

The senior housing market has been growing tremendously in recent years as baby boomers move into retirement communities that offer activities, peer socialization, hotel-style amenities, and support services as they age. The U.S. Census Bureau states that starting in 2030, all boomers will be over 65 (comprising 21% of the total population) and by 2060, almost one in four people will be 65-plus, and those 85-plus will triple; the country will also add half a million centenarians.

The sector, pegged at $958 billion in 2024, is expected to grow to $1.23 trillion by 2030 with memory care the fastest growing segment. According to NIC, senior housing has a relatively high occupancy rate of around 88% in large U.S. markets (third quarter 2025). However, demand outpaces supply, which is good for investors seeking a steady income stream from multiple tenants paying rent plus health and personal care and service/amenities fees.

Investors can include senior housing in a self-directed IRA portfolio in several ways:

• The SDIRA purchases an investment property and leases it to an assisted living facility operator.
• Direct ownership – the IRA owns and operates the assisted living business and leases the real estate or owns both the real estate and business.
• The account owner forms an LLC to invest in real estate (which includes joint venture/partnership opportunities)
• Use IRA funds to invest in public or private REITs or funds that are focused on senior housing.
• The SDIRA invests in a senior housing syndication that pools capital from multiple investors and acquires and manages the property under the leadership of a sponsor or general partner.

NOTE: When investing in a debt-financed senior housing syndication, beware of potential tax implications concerned unrelated debt-financed income (UDFI) and unrelated business income tax (UBIT). Therefore, we recommend you consult a tax professional with expertise in this area before making an investment. Our CEO, Jaime Raskulinecz, published an article explaining how to invest in a real estate syndication through a self-directed IRA in her Forbes Finance Council column, which you can read here.

Other considerations in senior housing real estate investments are local market conditions, operational and financial stability, zoning laws, adherence to regulatory and compliance issues, and renovation needs and costs, which can all affect the property’s ROI.

Open a self-directed IRA with Next Generation Trust Company

Regardless of the types of alternative assets you wish to include in your self-directed IRA, it’s important to have an experienced, knowledgeable and responsive team to support you. At Next Generation, we know that an informed investor is a smart investor; we offer client education and resources, and we are available to answer your questions about how to include all types of nontraditional investments allowed in SDIRAs. Give us a call at 888.857.8058 or email NewAccounts@NextGenerationTrust.com to find out more.