Suggestions on Markets for Medium Term Investing?

Question

Hi BP Community!

I am getting started to REI and would like to enter the medium-term market (travelling nurses, executives, digital nomads etc..). I have a few questions for the fellow BP members that currently own medium term rentals: Are there any specific states/regions in the US that you believe work better for medium term rentals than other? Are there a couple areas you would suggest would be a good starting point? I am thinking that maybe when I have a couple of recommendations, I can do some further downstream market analysis and choose one. Also, not only will this property be my first medium-term rental but it will also be my first investment property ever so any pointers/words of wisdom/tips would be highly appreciated!

Thank you all so much!

Nathan Gesner · Answer

The difference between mid-term rentals and long-term rentals is . . . nothing. Same laws. Same lease. Same policies and procedures. A medium-term rental is really a long-term rental leased on a monthly basis.

The market you're looking for are temporary/seasonal employees that want a furnished long-term rental for more than 30 days and less than a year. Think hospitals with traveling nurses, large companies with interns or transitional workers, etc.

Account Closed · Answer

Try searching furnished finder for some ideas

Ryan Kelly · Answer

@Mohammed Nasser the biggest difference between long-term rentals and mid-term rentals is Hospitality. With most long-term rentals, you are only renting the home and the tenant pays all utilities, mows the lawn, etc. With a mid-term rental (at least here in Austin), it will run like an Airbnb but for a longer term (30+ days). You will have it fully furnished and stocked, all bills paid, all landscaping taken care of, etc. You will want to be in locations that are attractive to traveling workers, nurses, corporate relocations, and longer-term travelers. Another observation, smaller bedroom counts of 1-3 bedrooms seem to be more attractive than larger homes unless you are looking to do a rent-by-the-room strategy.

Wale Lawal · Answer

@Mohammed Nasser

Welcome to BiggerPockets!

I am a real estate agent and investor in the Houston market.Katy, Cypress, Spring, some parts of Houston, Conroe, Tomball, Pearland are great markets.Rent growth and appreciation is steady.These cities tend to command quality tenants, and they have great schools.

Good luck!

Chris Seveney · Answer

I would recommend doing a thorough market study from someone like John Burns to determine if MTR is even something that is viable. Of course, this study may cost $10,000 but it is cheaper than buying a property thinking you can use it as a MTR and then lose your shirt.

Mohammed Nasser · Answer

Thank you for your reply @Ryan Kelly! I like your recommendation of the smaller bedroom counts!

Eliott Elias · Answer

Austin Texas is a great market for MTR

Mohammed Nasser · Answer

Thanks so much for your reply @Nathan Gesner! That is very true. I have been analyzing markets for MTR's the same way I have been learning to do it for LTR's. I was wondering if people on the forum had recommendations for states that are known for healthcare/destinations for travel nurses to use as a starting point. I will continue looking for such places as part of my analysis.

Thanks again for your reply!

Mohammed Nasser · Answer

Thanks for the recommendation @Chris Seveney! I will look up who John Burns is. Thanks again!

Suggestions on Markets for Medium Term Investing?

Most Popular Reply