To MTR, LTR or Sell

[Jordan Zurn]

My partner and I are pretty new in real estate, but we've been using house-hacking as a way to (hopefully) build our portfolio in Phoenix, AZ. Our first property is a single family home with long term renters. We then bought a condo in Downtown Phoenix and lived in it for 2 years. We recently bought another single family home at the beginning of this year, moved into that one, and are now trying to find renters for our Downtown Phoenix condo. 

The condo has been up for rent since March. It's currently June and we're still waiting to find renters. We're within a 10 mile radius of many large hospitals, so I'm starting to think about trying to market to traveling nurses and utilize Furnish Finder as a way to get mid term rentals instead. The only downside is that we'd have to invest in fully furnishing the condo without the guarantee of finding those mid term renters.

I did a search on Furnish Finder and our complex has 3 properties that are unavailable (presumably booked) through late summer. On Zillow, our complex currently has 8 condos for long term rent available. We are in the middle range of these properties as far as cost with a more modern and updated unit than the lowest priced units. 

Because of the mortgage and HOA payments on the condo, we know that we won't be able to cover the condo's expenses with rent alone. We'll have to spend money each month to make up the difference. Going into this plan, we were okay with that because keeping the asset is more important to us than having a cash flowing property. We're a dual income, no kids household and the expense to keep the condo isn't that much for us. I know technically it isn't smart, but I'm really hoping that playing the long game here will eventually pay off.

If you were in my situation would you 1). Continue looking for long term renters 2). take the risk to fully furnish the condo and market to mid term renters or 3). cut your losses and sell. 

Thanks in advance for any advice! 

[Jeff Hurst]

JZ - another option is to list on FurnishedFinder using photographs without furniture and have the first line in your description be that you will furnish prior to move in of your first renter. Many renters like that as they can be involved in minor selections (And also know everything is new). You mainly just need a plan to furnish the home on short notice if you find the right match. You can also reach out to the booked landlords on FurnishedFinder to ask about their experience.