Travel Nurse MTR vs. Multi-Family 4-Plex
Member since 2023 · 32 posts · 6 votes
Hey BP Family, I'd love your insight on this.
I'm currently weighing two intriguing options: house-hacking a 4-plex or venturing into the realm of MTR with a single-family home or duplex, particularly for renting to travel nurses. While the former presents a classic investment opportunity, the latter has caught my eye for its unique and potentially lucrative approach.
As someone relatively new to this field, I'm aware that there might be aspects I haven't considered or opportunities I'm overlooking. Your insights, advice, and recommendations would be invaluable to me in this decision-making process.
Thanks!
Hey BP Family, I'd love your insight on this.
I'm currently weighing two intriguing options: house-hacking a 4-plex or venturing into the realm of MTR with a single-family home or duplex, particularly for renting to travel nurses. While the former presents a classic investment opportunity, the latter has caught my eye for its unique and potentially lucrative approach.
As someone relatively new to this field, I'm aware that there might be aspects I haven't consid or opportunities overlooking. Your insights, advice, and recommendations would be invaluable to me in this decision-making process.
Thanks!
We own a duplex, 3/1.5 and 2/1. They were both on LT rentals. Last year we reno'd the 3/1.5 and listed it as a 30+day rental. It's been a very successful transition. We intend to do the same with the 2/1 at the end of its current lease.
Something to consider..going after travel nurses is only 1 demographic to consider. Ours has been full with people moving to the area looking to buy. Supply is so tight, they need temp space that will give them time find and close on their purchase. All of our guests so far are in this category. Corporate travel, divorce, etc. are other potential tenants.
If costs in your market allow, I would encourage a duplex purchase vs SF...potentially 2 income streams vs 1 would help offset the extra cost of a duplex. Good luck
House hack the 4 plex - it takes less money down and you likely buy the asset that spits off more cash. Why can't you MTR 1 or more units of the 4 plex? That's what I would do...some of those decisions would be market dependent though.
Why not house hack the 4 plex and use 3 of the units for MTR?
What type of units are the 4-plex you're looking at? Are they 1/1s or 2/1s? If so, they could be good MTRs especially if you're looking to target travel medical professionals. Location matters, too, as does the mix of renters you put in your units. For example, travel nurses typically work long hours and are often night shift workers, meaning they need to sleep during the day. Sharing walls with a noisy family with children or college students for example is not going to invite conflict and may cost you in poor reviews or guests wanting to leave early. So just think about your occupant mix because it can be tempting to accept anyone who comes along especially when starting out. If you're also living in one of the units it'll be easier for you to monitor this and make sure everyone is comfortable in your place.
Hey BP Family, I'd love your insight on this.
I'm currently weighing two intriguing options: house-hacking a 4-plex or venturing into the realm of MTR with a single-family home or duplex, particularly for renting to travel nurses. While the former presents a classic investment opportunity, the latter has caught my eye for its unique and potentially lucrative approach.
As someone relatively new to this field, I'm aware that there might be aspects I haven't consid or opportunities overlooking. Your insights, advice, and recommendations would be invaluable to me in this decision-making process.
Thanks!
We own a duplex, 3/1.5 and 2/1. They were both on LT rentals. Last year we reno'd the 3/1.5 and listed it as a 30+day rental. It's been a very successful transition. We intend to do the same with the 2/1 at the end of its current lease.
Something to consider..going after travel nurses is only 1 demographic to consider. Ours has been full with people moving to the area looking to buy. Supply is so tight, they need temp space that will give them time find and close on their purchase. All of our guests so far are in this category. Corporate travel, divorce, etc. are other potential tenants.
If costs in your market allow, I would encourage a duplex purchase vs SF...potentially 2 income streams vs 1 would help offset the extra cost of a duplex. Good luck
House hack the 4 plex - it takes less money down and you likely buy the asset that spits off more cash. Why can't you MTR 1 or more units of the 4 plex? That's what I would do...some of those decisions would be market dependent though.
Good thinking Travis! I'd have more real estate to work with, literally and figuratively speaking.
Why not house hack the 4 plex and use 3 of the units for MTR?
WHY NOT! Love it, you've got my wheels spinning Tanishia.
Experience is a great teacher, thank you for sharing. Have you considered hiring a property manager? This will reduce the cash flow, but it might be worth relieving the headache. PLUS, good property management companies are great to build relationships with; they see and hear of off-market deals.
What type of units are the 4-plex you're looking at? Are they 1/1s or 2/1s? If so, they could be good MTRs especially if you're looking to target travel medical professionals. Location matters, too, as does the mix of renters you put in your units. For example, travel nurses typically work long hours and are often night shift workers, meaning they need to sleep during the day. Sharing walls with a noisy family with children or college students for example is not going to invite conflict and may cost you in poor reviews or guests wanting to leave early. So just think about your occupant mix because it can be tempting to accept anyone who comes along especially when starting out. If you're also living in one of the units it'll be easier for you to monitor this and make sure everyone is comfortable in your place.
Bang, well said Bonnie. Noo wonder you're the #2 MTR contributor on here!
Hey @Max McQueen!
I loveeee where your head is at! You're wanting to get into some great strategies. The small multi-family and MTR approach can be a good one. If you house hack either, then you can put yourself into an even better wealth building position.
4-PLEX IDEA
If you find a four plex in a good area for a reasonable price point, then you can leverage a low down payment option if you were to house hack. You could live in one of the units and rent out the others either LTR, MTR, or a mix of both. Maybe you could move into one, rent one or two as MTR, then slowly transition all of the units to MTR if you've seen success.
IMO, I think a 4-plex with smaller units can actually be a great MTR opportunity. It seems like traveling professionals, many interns, and even other professionals are tending to look for smaller spaces if they are traveling alone. For example, if you have a 4-plex with all 1/1s or 2/1s, then maybe you can nail their price range and be booked consistently.
SFH/Duplex as MTR
This is actually what I'm doing right now. We bought a duplex to house hack and MTR/STR the other unit. I love this option, because you can leverage low down payment, get benefits of real estate, learn a lot of valuable RE skills, and can maximize your income with a furnished rental.
As a SFH, you could potentially rent out rooms or an additional space out as MTR/STR, but there is potentially less privacy. I think that is a decision based on your situation & goals.
I'm not sure what your market rates, prices, or demand are, but I'd suggest analyzing both of the strategies you mentioned and see what numbers make the most sense. Go after whatever ROI & NROI math out the best! Haha
Good luck @Max McQueen! Keep us updated on how things go and please feel free to reach out with questions or to chat RE.
I've had great luck with MTR rentals within a 4-plex. We're still seeing a high demand in our area for small private furnished rentals, primarily travelling medical professionals. In my case because of the demand, having a number of apartments of similar size and scale helps with keeping the vacancy low.
Not a house-hacker but I see no reason it wouldn't work within this strategy.