Does a 2/1 or a 4/2 work better for a MTR?

[Brad Hunton]

I am currently looking to pivot a little in my real estate strategy and convert a couple of my LTR's to MTR's for the increased revenue. In your experience does a 2 bed 1 bath work well or are the 4 bed 2 bath homes more sought after?  There are very few options at the moment for any MTR's in my area. I do believe there would be a big demand for them once people realize they are out there. Oil field, wind turbine, traveling nurses are all in demand right now. Is it better to go smaller or go as big as you can and do a more rent by the room template? 

Thank you for your input.

[Bonnie Low]

It totally depends on who you're marketing to. I'm in a lot of groups for travel medical professionals. The vast, vast majority prefer their own space, but will take a room in a house with one or maybe two other people IF the price is right. I see hosts all the time advertising their 4 or 5 bedrooms and the comments are almost always 'I don't want to share with that many people, especially if we're all working different shifts.'  Then again, if your avatar isn't travel medical professionals but rather is families relocating temporarily, insurance claims or even construction workers, you might do just fine with a bigger space. 

[Kenny Smith]

@Brad Hunton

Great strategy! As we scale our portfolio, we intend to switch some of our STR's to MTR's to take advantage of this growing segment, and have our rentals become more passive.

I think it all depends on what your strategy will be.  Do you live near a hospital?  If so, your niche will likely be traveling nurses.  If you were to do rent by the room, I think most traveling nurses are going to be younger and single (mostly), so I don't think it would affect a 4/2 or 2/1 as much as if you catered to other MTR professionals.  If traveling nurses aren't going to be the bulk of your business, I'd recommend doing a 2/1 then.  People in other fields may not want to room with other folks, and they certainly don't need a 4 bed house if it is only 1 or 2 people or willing to pay for a bigger place.  

Good luck, and keep us posted on how it goes!

[Brad Hunton]

Quote from @Bonnie Low:

It totally depends on who you're marketing to. I'm in a lot of groups for travel medical professionals. The vast, vast majority prefer their own space, but will take a room in a house with one or maybe two other people IF the price is right. I see hosts all the time advertising their 4 or 5 bedrooms and the comments are almost always 'I don't want to share with that many people, especially if we're all working different shifts.'  Then again, if your avatar isn't travel medical professionals but rather is families relocating temporarily, insurance claims or even construction workers, you might do just fine with a bigger space. 

 Thank you, I believe I might just try the 2/1 and get some feedback if more people would be looking for a bigger house. Honestly, I don't care who my tenants are as long as the place would stay rented.

[Brad Hunton]

Quote from @Kenny Smith:

@Brad Hunton

Great strategy! As we scale our portfolio, we intend to switch some of our STR's to MTR's to take advantage of this growing segment, and have our rentals become more passive.

I think it all depends on what your strategy will be.  Do you live near a hospital?  If so, your niche will likely be traveling nurses.  If you were to do rent by the room, I think most traveling nurses are going to be younger and single (mostly), so I don't think it would affect a 4/2 or 2/1 as much as if you catered to other MTR professionals.  If traveling nurses aren't going to be the bulk of your business, I'd recommend doing a 2/1 then.  People in other fields may not want to room with other folks, and they certainly don't need a 4 bed house if it is only 1 or 2 people or willing to pay for a bigger place.  

Good luck, and keep us posted on how it goes!

 I do have a hospital close but there are also a lot of traveling oil workers and wind turbine techs. Like I mentioned earlier I don't honestly care who rents as long as it stays occupied.

[Eliott Elias]

The more rooms the better, for MTR and resale value 

[Sarah Weaver]

This will completely depend on your location and which pool of tenants you are serving. Kenny, above, did a great job breaking it down. You can find success either way with the right audience! Best of luck. 

[Brad Hunton]

Quote from @Eliott Elias:

The more rooms the better, for MTR and resale value 

 Thank you, I will factor that in as well.

[Brad Hunton]

Quote from @Sarah Weaver:

This will completely depend on your location and which pool of tenants you are serving. Kenny, above, did a great job breaking it down. You can find success either way with the right audience! Best of luck. 

 Thank you.

[Bud Gaffney]

More the merrier. 4/2 all day!

[Brad Hunton]

Quote from @Bud Gaffney:

More the merrier. 4/2 all day!

 I could have both house sizes available soon so I might try both and see how it goes. I already have a good team in place. Just would need to furnish them.

[Luke Stewart]

Food for thought. Do you have both 4-2 and 2-1 units? Why not do one of both and feel it out? Then if one doesn't do well you can convert it back to LTR. I think, just as the other people have stated it depends what the demand in your area is. Is your city growing quickly? = families moving and needing temporary housing, 4-2 better. Is it a traveling work/nurse/contract type city? = 2-1 better. I do think you can charge more for 2, 2-1 units than 1, 4-2.. but I don't have data to support it, just my thought. 

[Brad Hunton]

Quote from @Luke Stewart:

Food for thought. Do you have both 4-2 and 2-1 units? Why not do one of both and feel it out? Then if one doesn't do well you can convert it back to LTR. I think, just as the other people have stated it depends what the demand in your area is. Is your city growing quickly? = families moving and needing temporary housing, 4-2 better. Is it a traveling work/nurse/contract type city? = 2-1 better. I do think you can charge more for 2, 2-1 units than 1, 4-2.. but I don't have data to support it, just my thought. 

It is a smaller town in West Texas. Lots of traveling oil field, wind turbine, and a few traveling nurses. I can go a little cheaper on furnishings and get some good pictures taken and see how it goes. 

If it goes how I think it will I might be converting more to MTR. All of them cash flow as LTR's so I have flexibility.

[Luke Stewart]

@Brad Hunton If I was in your shoes, I would take it one at at time. Furnish one nicely, then save that cash flow, if it works out well use that cash flow to furnish the next. Baby steps. But I would definitely furnish on the nice side, not the cheap side. People like a nicer place if they are there for a month, at least in my experience.

[Brad Hunton]

Quote from @Luke Stewart:

@Brad Hunton If I was in your shoes, I would take it one at at time. Furnish one nicely, then save that cash flow, if it works out well use that cash flow to furnish the next. Baby steps. But I would definitely furnish on the nice side, not the cheap side. People like a nicer place if they are there for a month, at least in my experience.

 Thank you for your insight. So if I was to convert one of my LTR's you would go with one that is more modern and updated and get more of a higher quality furnishings?

[Luke Stewart]

Quote from @Brad Hunton:

Quote from @Luke Stewart:

@Brad Hunton If I was in your shoes, I would take it one at at time. Furnish one nicely, then save that cash flow, if it works out well use that cash flow to furnish the next. Baby steps. But I would definitely furnish on the nice side, not the cheap side. People like a nicer place if they are there for a month, at least in my experience.

 Thank you for your insight. So if I was to convert one of my LTR's you would go with one that is more modern and updated and get more of a higher quality furnishings?

 I would, it wills stand out more and you can charge more.. equaling more cash flow... which you could use to update the other older units and create a second furnished rental!

[Brad Hunton]

Quote from @Luke Stewart:

Quote from @Brad Hunton:

Quote from @Luke Stewart:

@Brad Hunton If I was in your shoes, I would take it one at at time. Furnish one nicely, then save that cash flow, if it works out well use that cash flow to furnish the next. Baby steps. But I would definitely furnish on the nice side, not the cheap side. People like a nicer place if they are there for a month, at least in my experience.

 Thank you for your insight. So if I was to convert one of my LTR's you would go with one that is more modern and updated and get more of a higher quality furnishings?

 I would, it wills stand out more and you can charge more.. equaling more cash flow... which you could use to update the other older units and create a second furnished rental!

 Thank you, sounds like a good strategy to start with. This is my first venture into anything other than LTR so just trying to minimize my risk while increasing revenue. 

[Allen Duan]

In our experience with MTR in Los Angeles. The smaller properties have much more demand. I'd rather have 1 bedroom units than 3 or 4 bedrooms. Like others have said, a 3+ bedroom home will appeal to families, a 1 or 2 bedroom appeals to travel nurses and anyone else traveling alone or as a couple. I find this is much more common than a family of 4 looking for a MTR. All real estate is local though, so the ultimate answer is who do you think will want to stay at your MTR.

[Olivia Leija]

In my experience mid term rentals are better than long term rentals.  The guests usually want a space to themselves and don't want to pay more than $1200 for a space as they travel alone.  Use furnished finder to find medical personnel leads.  Best of luck.