Short Term/Mid Term Rental in Sacramento region

Short Term/Mid Term Rental in Sacramento region

Dublin, CA · Member since 2020 · 69 posts · 15 votes

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. 

1Reply
76 views

Most Popular Reply

Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
4y

@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!

See this reply in the discussion

13 Replies

Jump to latestLatest
  • Realtor · Folsom, CA · Member since 2014 · 52 posts · 28 votes
    4y

    I am doing a mid term rental starting mid January, but it's in my own home. I have an in law unit (1 bedroom) that has a separate entrance and it's own garage. I posted on FurnishedFinder for $1995 and got a lot of interest just to give you an idea. I can't speak to a SFH as a stand alone mid term rental, but am interested in finding out as well. I would like to buy additional properties in this area, but there is the cashflow issue. However, rents have been increasing dramatically. My thought is a househack is a goldmind if that's where someone can start off. I am looking to scale, but confused as to what strategy to take. I currently have out of state properties, but would like to invest locally. The question is LTR, STR, multi, commercial...Curious to see what responses you get.

  • Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
    4y

    @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!

  • Investor · Los Angeles · Member since 2019 · 118 posts · 102 votes
    3y
    Quote from @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!


     very informative, what do you think of a 5b3b house, is it hard to put 5 traveling nurses in a house at one time , or add different group of people to  the house to increase the occupancy rate?

  • Zeona McIntyrePro Member
    Real Estate Agent · Boulder, CO · Member since 2015 · 284 posts · 226 votes
    3y

    Hey Gaby, 

    A 5 bedroom is quite large. You could do rent by the room but that's likely a pain with all the different tenants leaving at varied times. Is there a way to make this an unofficial duplex, even if one has more of a kitchenette? 

  • Realtor · Sacramento, CA · Member since 2019 · 242 posts · 152 votes
    3y

    Hi! I might be a little late to the party, but my husband and I rent by the room/househack our 6 bedroom house here locally in Roseville (aka basically Sacramento) so let me know if anyone has questions about prices, logistics, or anything else :)

  • Lincoln, CA · Member since 2021 · 4 posts · 3 votes
    3y
    Quote from @Paul Sandhu:
    Quote from @Nicole Masters:

     if anyone has questions about prices, logistics, or anything else :)


     I have a question.  Why does it look like you are wearing lingerie in your avatar?

    She is wearing a wedding dress?
  • Realtor · Sacramento, CA · Member since 2019 · 242 posts · 152 votes
    3y
    Quote from @Andrew Palamides:
    Quote from @Paul Sandhu:
    Quote from @Nicole Masters:

     if anyone has questions about prices, logistics, or anything else :)


     I have a question.  Why does it look like you are wearing lingerie in your avatar?

    She is wearing a wedding dress?

    1) Thank you Andrew for noticing this and saying something, I appreciate it!

    2) I loved the way I looked on my wedding day and will absolutely use this headshot for as long as I can lol.

    3) This guy is clearly just a troll who somehow thinks Bigger Pockets is the best place to be a jerk to people for no reason.

  • Member since 2022 · 3 posts · 1 vote
    3y

    @Nicole Masters Which online tool have you found useful for finding "rent by the room" renters? I used to be a renter and found my places on Craigslist, but this was easier in metropolitan cities. Is that a good source in the suburbs like Placer County? Also, starting out, do you suggest maybe a 6 months lease first to get a feel of the roommate first? And any tips on renters insurance? I heard about a "Lemonade" company recently. Would love to hear anyone's points.

    Thanks for sharing!

  • Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
    3y
    Quote from @Nicole Masters:
    Quote from @Andrew Palamides:
    Quote from @Paul Sandhu:
    Quote from @Nicole Masters:

     if anyone has questions about prices, logistics, or anything else :)


     I have a question.  Why does it look like you are wearing lingerie in your avatar?

    She is wearing a wedding dress?

    1) Thank you Andrew for noticing this and saying something, I appreciate it!

    2) I loved the way I looked on my wedding day and will absolutely use this headshot for as long as I can lol.

    3) This guy is clearly just a troll who somehow thinks Bigger Pockets is the best place to be a jerk to people for no reason.



    Who is this guy Nicole Masters?  I'm calling you out.
  • Realtor · Sacramento, CA · Member since 2019 · 242 posts · 152 votes
    3y
    Quote from @Colleen Chen:

    @Nicole Masters Which online tool have you found useful for finding "rent by the room" renters? I used to be a renter and found my places on Craigslist, but this was easier in metropolitan cities. Is that a good source in the suburbs like Placer County? Also, starting out, do you suggest maybe a 6 months lease first to get a feel of the roommate first? And any tips on renters insurance? I heard about a "Lemonade" company recently. Would love to hear anyone's points.

    Thanks for sharing!


     Hey Colleen! I lovvvvve love love Roomies.com! It's been my go to platform for find roommates and I've loved every person I've found from there. I have also found some good candidates through Facebook Marketplace, and one person though Craigslist. We also have people get their own renters insurance, covering up to $100,000 in damages/loss.

    We always start with 6 month leases to make sure it's long enough that we have a commitment from them, but not so long in case we end up not being a good fit after that. After the initial 6 months we offer 6, 9, and 12 months at different price points.

  • Member since 2022 · 3 posts · 1 vote
    3y

    Thank you @Nicole Masters! Those are great points. Which rental payment programs have you tried and liked? Most of my landlords were old school and we did paper check ha!

  • Realtor · Sacramento, CA · Member since 2019 · 242 posts · 152 votes
    3y

    @Colleen Chen We use Avail.co and really love it. It works well for rent by the room because you have one main address with multiple units (aka the rooms) listed underneath it. We have a referral link if you would ever like it feel free to send me a DM! The basic platform of the software is free, but you can pay $5/unit for the premium. 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.