Would you Pick STR, MTR, or LTR and why???

Question

If you had the choice to pick any combination of these types of investments. What would you pick and why?

Tanner Pile · Answer

@Brandon Elliott MTR, Less work than the STR when running by myself and more income compared to LTR. Plus, getting the property cleaned monthly will get eyes on the property to make sure it is being taken care of.

Kenny Smith · Answer

@Brandon Elliott

I think it really depends on what how involved you want to be and what your long term goals are.  If you are limited on capital, and want to scale quickly, maybe an STR house hack is the way to go.  Putting as little money down as possible and squeezing everything you can out of the property but knowing you're going to need to put in hard work to do so.

Also, we do a mixture of STRs, MTRs, and LTRs, and I will say we are happy to run any strategy as long as it makes sense for that property.  Meaning, you need to look at your property and see which category of these 3 would best suit that property, how much work you want to put in managing it, and what are your expected financial results.

When I first chat with my clients about what strategy they are looking to do, I always ask about their long term goals in RE, and where they want to be financially in a year, 5 years, etc.  I also ask where they fall on the "comfortability vs profitability scale".  Typically, the less comfortable you are, the more profitable you are.

Everyone's situation is going to be different.

Great question!

Brett Deas · Answer

My company is structured as a syndication so the more we raise from private investors the more we can buy. So just keep up the current returns while finding more money is the plan.

Brett Deas · Answer

I do both Mid and short and I like them because it was easier to make them a full time job. Long-term is less work but less money, for me I wanted something active that I could easily scale and STR gave me that choice.

Ethan Gidcumb · Answer

I would pick MTR or LTR. I've heard a lot of success coming from MTR when landlords provide housing for traveling nurses. Also, I prefer LTR because that is what I have decided to focus more of my time and self-education on; however, I have family who have generated great returns through STR with AirBnB, Vrbo, etc.

Brandon Elliott-Pandey · Answer

Love the respone and approach! Thanks for your thoughts Kenny! :-D

Julien J. · Answer

Depends on the strategy.

My vote is multi due to ability to scale, ease of management, and reduction of vacancy risk.

In my Seattle Market, its a nice wealth building play. Although, harder to get into.

Brandon Elliott-Pandey · Answer

That is a great point Bret! Is that your plan to scale into more STR's?

Brandon Elliott-Pandey · Answer

Great point Tanner! IF I could go back and do it again that's the route I would have taken too. I started with a LTR and turned it into a MTR. It's been great since!

Would you Pick STR, MTR, or LTR and why???

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