Medium rental wave question nj

[Dennis Rogov]

Hi all

I have missed the initial rental wave for short term  rentals (I was on a sideline) and to lost to pull trigger. I am starting to hear medium term rental wave I am in a much better position and mindset to get involved.

I live in south Jersey 30 mins from Philadelphia..Our area has large hospitals and an international airport.

I got 3 questions

1.who is local in south Jersey that is using medium term rental 

2. With Jersey being one of the most restricted real estate states laws how do I research medium term rentals

3. How do I underwrite /analyze a medium term rental potential cash flow 

What other questions should I be asking that I didn’t ask…for someone who is brand new to medium term rentals niche.

[Zeona McIntyre]

Hi I am not local to jersey but am one of the authors of BP's new book on medium-term rentals and happy to help! 

Medium-term rental laws will be the same as long term in most cases. I would look on your city's website for rental licenses and see what comes up. You may need an inspection or license. 

To analyze, I suggest doing it like a long term rental: 8% vacancy, 10% maintenance / cap ex, management (although I recommend self managing), and then including utilities and snow removal/lawn work if applicable. I suggest looking on Furnished Finder for rental comps. 

I'd suggest researching with trauma level the hospitals are there. You are looking for 1 & 2, higher numbers don't get enough travel staff. You also want to see more than 150 beds to expect many tenants. 

[Trent Rogers]

Quote from @Zeona McIntyre:

I'd suggest researching with trauma level the hospitals are there. You are looking for 1 & 2, higher numbers don't get enough travel staff. You also want to see more than 150 beds to expect many tenants. 

Excited to start your book today! I'm hoping there are some tips for doing market research as that's the phase I'm in. Can you clarify what you meant by the trauma level?

[Nicholas Davaul]

Quote from @Zeona McIntyre:

I'd suggest researching with trauma level the hospitals are there. You are looking for 1 & 2, higher numbers don't get enough travel staff. You also want to see more than 150 beds to expect many tenants. 

 Hmmm. I never thought about the number of beds. I do have a question based on your experience what is your take on "location" of the MTR w/ respect to the Hospital vs. "City Life"...   Do your tenants rather want to live closer to social life/night life/ "city center" type of locations (apologies for the vague description) and driver further to the Hospital?  Or do they want to live closer to the hospitals and driver further to get to that "city life"?  

Also, can you comment any further on the number of beds...  Obviously the more the merrier, but I'm assuming that Lv1 and Lv2 would have at least that many.

[Zeona McIntyre]

@Nicholas Davaul I would go with the city life area if it's still within 5 miles of the hospital. The city will attract different types of tenants; remember, nurses are not your only tenants and real estate is all about location. Being in the hot spot vs near the hospital may also change the purchase price so you need to make sure the area gives you the % return you require.  

[Zeona McIntyre]

@Trent Rogers Thanks for getting the book! Yes there is a whole section on choosing the right location which goes over market research. 

Hospitals all received a trauma level rating, depending on the type of patients they can treat. Trauma levels 1& 2 have more travel nurses as they patient to nurses ratio is closer to 1 to 1. These are the type that handle ER emergencies.