Short Term/Mid Term Rental in Sacramento region

[Prachi Metha]

I am looking into getting a property in Sacramento Region and converting it into Mid Term rental (3 to 6 month furnished rental for business/travel nurses). Does anyone have Mid Term Rental in this region, needed some insights on how it performing? Any challenging and even if this is a good idea or is it too much negative cash flow. 

[James Carlson]

@Prachi Metha

I don't know about your market. We have medium-term furnished rentals in Colorado Springs and Denver -- two condos and one SFH, and all of them do well for us.

The condos in Denver -- a 1br and a 3br -- are in an area just outside of the core downtown area but they still feel urban. We get a lot of traveling nurses, either solo or a pair traveling together. Some remote workers as well. We're probably 1.5 miles from the nearest hospital, and I'll say that few of our stays are actually working at that hospital. Instead, it seems that having a nice interior space, and proximity to "action," not necessarily their work place, is driving the decision.

Our 4br/2ba SFH in Colorado Springs is about a mile east of the downtown corridor. We had it furnished to rent to traveling nurses, but stumbled upon a pretty good market of college students from the private college in downtown. To our surprise, the kids have been awesome the past two years. I'm sure we'll have a few issues at some point, but they pay well for it being furnished, and they sign an 9-month lease. Then we fill in during the summer months with shorter stays.

So think about what would draw people to your area. And check out sites like Furnished Finders to see if there are a lot of other people doing this. (Yes, you could see this as there being a lot of competition, but it also means there's demand for this model.)

Good luck!