Determining Quality MTR
Investor · Oswego, IL · Member since 2024 · 21 posts · 19 votes
Determining Quality MTR
Most Popular Reply
Miguel Del MazoPro Member
Northeast Georgia · Member since 2023 · 140 posts · 170 votesI am going to try and answer this question with a fair amount of grace, so please bear with me.
As to the original question, here's a rough idea of my thought process regarding a potential purchase:
The hospital is a Level II trauma center with 390 beds (that's a decent-sized hospital), so it probably needs a fair number of travelers. If you want a general sense of their demand for traveling medical professionals, go to the hospital job recruitment page. If there are a large number of openings, then they are likely filling that need with travelers.
See how much the property will cost a month. Principal, interest, taxes and insurance. 280k with 20% down at 7% = about $1500 a month for PI. Taxes are public record, and are about $125 a month (will go up after purchase a bit). Insurance shouldn't be bad as this is a condo, so a lot of potential risk is covered by the HOA insurance. Add another $20 a month for that.
Add in HOA fees ($300 a month; shown in your link), Gas, electricity, high-speed internet, water, trash and snow removal. A lot of those costs are probably part of the HOA dues, so let's say and average of $175 a month for electricty and another $80 for internet. You have a better idea of those costs as I do not live in IL.
So, costs so far are $2200. Play around with that with your more accurate estimates.
Rentometer estimates that rents in the area for a 2/1.5+ are around $2500. Using a 1.5x estimate for what a MTR rental rate might be gives us $3,750. Then I would compare that estimate with what Furnishedfinder.com has in the area. In the immediate are there are 3 houses on FF that are going for 4000 to 6000 a month, but they are 3 BR to 4BR SFHs. I would then adjust down the original MTR rental estimate based on those findings. Let's say $3200?
$3200- $2200 = $1000 month of profit, right? Not really. Put aside some money for fixing things up around the condo from time to time ("CapEx"; 5% to be conservative), and some for vacancy (maybe 10% of the monthly). That leaves ($3200 x .85) - $2200 = $520 a month in profit. Bear in mind, you will have to tweak these numbers based on what you think are proper estimates. For instance, I suspect vacancy might be a little higher based on the train tracks running directly behind the condo. That might be normal and expected in IL. I don't know.
So for $56,000 dollars down plus (an estimated) $7,500 in closing costs plus another $5000 in furnishings, you get an asset that produces about $500 dollars a month. $68,500 / $500 per month = about 12.4 years to get back the intial investment.
So why do people bother if it takes 12 years to get back your investment on what looks a pretty good monthly profit? Well, in that 12 years, your tenants will have paid down about $35,000 in principal (aren't amortization schedules depressing?), and at a 2% average yearly increase in value of the condo, it will be worth about $60,000 more than when it was purchased. These numbers get better if the area is becoming more in demand over time as rents will go up and the condo will appreciate faster than 2%.
*Now we come to the hardest part*: does this property have "potential"? I have no idea primarily because deals are only "good" or "bad" in the context of what the goals of the owner are. Would I self-manage this deal to earn $500 a month allowing me to own this property in 15, 20 or 30 years? Yes. Should you? Again, I have no idea. that's a much more personal decision, and that is probably why Jonathan Greene asked for more information from you about your experience level, especially since you wrote "I am totally out of my league understanding the possibilities of an MTR".
To be successful in the MTR space, I would recommend that any owner or operator strive to provide the best customer experience possible. Potential residents can tell if the owner/operator authentically cares about providing that A+ experience, and they will vote with their wallet regarding where they stay.
So going back to my original sentence, here is where my grace runs out. I have a challenge for the OP. I took over an hour, on a Sunday,to click a suspicious link in order to look over your property, to learn a little bit more about the West Chicago sub-market, to analyze a deal for a stranger; and to present a rough algorithm for how to analyze the numbers of a deal so that a general process could extrapolated for the next property you consider. All of that was done without thought for any return to me. It was done simply because I enjoy helping in my very limited way. If at any point in this admittedly large wall of text, you, OP, found yourself getting upset with me, then I would recommend you avoid the MTR space as you will find many similar opportunites to learn that you will not enjoy. LTRs are a great way to approach real estate, and it sounds like you are doing very well in that space. Keep crushing it there.
34 Replies
- 1yJonathan GreeneBusiness MemberReal Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
Personally, I don't click on other people's links so you would be best served to put information about the property in here. But I would say if you see something that seems good, but have no idea if it's good, you probably don't have the reps to make a decision on it yet and could be swayed by people who are just looking on the internet.
Do you own any properties? Have you ever been a landlord? Do you the mechanics of having an MTR?
- Real Estate Consultant · Reston, VA · Member since 2022 · 513 posts · 521 votes1y
Hi Scott,
When determining if a property is suited for MTR you should do some research on what brings people to the area who need to rent midterm. This will help you determine if the area is a good is good for MTR and the size property that will be best suited for the area
- Investor · Oswego, IL · Member since 2024 · 21 posts · 19 votes1yWasn't that the main point of the post? I gave an example of a property to start a conversation to learn more about MTR. It also is potential for someone who has expertise in MTR to connect. It didn't ask should I do this.
To answer your other question, yes I have LTR property that is doing quite well.
Appreciate the forum etiquette lesson. Perhaps some reciprocal is to tone it down and not come in hot as my teenagers call it! - Investor · Oswego, IL · Member since 2024 · 21 posts · 19 votes1yThank you. Do you have suggestions on how best to do that research? Are there mid term rental sites to find them?
Quote from @Jamie Banks:
Hi Scott,
When determining if a property is suited for MTR you should do some research on what brings people to the area who need to rent midterm.
- 1yJonathan GreeneBusiness MemberReal Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
Quote from @Scott Meech:
Wasn't that the main point of the post? I gave an example of a property to start a conversation to learn more about MTR. It also is potential for someone who has expertise in MTR to connect. It didn't ask should I do this.
To answer your other question, yes I have LTR property that is doing quite well.
Appreciate the forum etiquette lesson. Perhaps some reciprocal is to tone it down and not come in hot as my teenagers call it!I think you may want to take a look in the mirror and see what's wrong because your response makes no sense. This is a way to set the tone for your behavior on the site. You said you were clueless about MTR so I asked "Do you own any properties? Have you ever been a landlord? Do you the mechanics of having an MTR?" and you flared up.
There is no way to know your background when you are new to the site and just putting a link out there for people to click and help you on doesn't really help anyone. It's like putting your hand in the ocean, taking a picture of the fish you caught, and asking the internet if it's good. We don't know anything about you so how can we really help that much?
- 1yMiguel Del MazoPro MemberNortheast Georgia · Member since 2023 · 140 posts · 170 votes
I am going to try and answer this question with a fair amount of grace, so please bear with me.
As to the original question, here's a rough idea of my thought process regarding a potential purchase:
The hospital is a Level II trauma center with 390 beds (that's a decent-sized hospital), so it probably needs a fair number of travelers. If you want a general sense of their demand for traveling medical professionals, go to the hospital job recruitment page. If there are a large number of openings, then they are likely filling that need with travelers.See how much the property will cost a month. Principal, interest, taxes and insurance. 280k with 20% down at 7% = about $1500 a month for PI. Taxes are public record, and are about $125 a month (will go up after purchase a bit). Insurance shouldn't be bad as this is a condo, so a lot of potential risk is covered by the HOA insurance. Add another $20 a month for that.
Add in HOA fees ($300 a month; shown in your link), Gas, electricity, high-speed internet, water, trash and snow removal. A lot of those costs are probably part of the HOA dues, so let's say and average of $175 a month for electricty and another $80 for internet. You have a better idea of those costs as I do not live in IL.
So, costs so far are $2200. Play around with that with your more accurate estimates.
Rentometer estimates that rents in the area for a 2/1.5+ are around $2500. Using a 1.5x estimate for what a MTR rental rate might be gives us $3,750. Then I would compare that estimate with what Furnishedfinder.com has in the area. In the immediate are there are 3 houses on FF that are going for 4000 to 6000 a month, but they are 3 BR to 4BR SFHs. I would then adjust down the original MTR rental estimate based on those findings. Let's say $3200?
$3200- $2200 = $1000 month of profit, right? Not really. Put aside some money for fixing things up around the condo from time to time ("CapEx"; 5% to be conservative), and some for vacancy (maybe 10% of the monthly). That leaves ($3200 x .85) - $2200 = $520 a month in profit. Bear in mind, you will have to tweak these numbers based on what you think are proper estimates. For instance, I suspect vacancy might be a little higher based on the train tracks running directly behind the condo. That might be normal and expected in IL. I don't know.
So for $56,000 dollars down plus (an estimated) $7,500 in closing costs plus another $5000 in furnishings, you get an asset that produces about $500 dollars a month. $68,500 / $500 per month = about 12.4 years to get back the intial investment.
So why do people bother if it takes 12 years to get back your investment on what looks a pretty good monthly profit? Well, in that 12 years, your tenants will have paid down about $35,000 in principal (aren't amortization schedules depressing?), and at a 2% average yearly increase in value of the condo, it will be worth about $60,000 more than when it was purchased. These numbers get better if the area is becoming more in demand over time as rents will go up and the condo will appreciate faster than 2%.
*Now we come to the hardest part*: does this property have "potential"? I have no idea primarily because deals are only "good" or "bad" in the context of what the goals of the owner are. Would I self-manage this deal to earn $500 a month allowing me to own this property in 15, 20 or 30 years? Yes. Should you? Again, I have no idea. that's a much more personal decision, and that is probably why Jonathan Greene asked for more information from you about your experience level, especially since you wrote "I am totally out of my league understanding the possibilities of an MTR".To be successful in the MTR space, I would recommend that any owner or operator strive to provide the best customer experience possible. Potential residents can tell if the owner/operator authentically cares about providing that A+ experience, and they will vote with their wallet regarding where they stay.
So going back to my original sentence, here is where my grace runs out. I have a challenge for the OP. I took over an hour, on a Sunday,to click a suspicious link in order to look over your property, to learn a little bit more about the West Chicago sub-market, to analyze a deal for a stranger; and to present a rough algorithm for how to analyze the numbers of a deal so that a general process could extrapolated for the next property you consider. All of that was done without thought for any return to me. It was done simply because I enjoy helping in my very limited way. If at any point in this admittedly large wall of text, you, OP, found yourself getting upset with me, then I would recommend you avoid the MTR space as you will find many similar opportunites to learn that you will not enjoy. LTRs are a great way to approach real estate, and it sounds like you are doing very well in that space. Keep crushing it there.
- Investor · Oswego, IL · Member since 2024 · 21 posts · 19 votes1yThat is a phenomenal answer and extremely helpful! Now I am going back to read it multiple times as there is so much.
Quote from @Miguel Del Mazo:
I am going to try and answer this question with a fair amount of grace, so please bear with me.
As to the original question, here's a rough idea of my thought process regarding a potential purchase:
The hospital is a Level II trauma center with 390 beds (that's a decent-sized hospital), so it probably needs a fair number of travelers. If you want a general sense of their demand for traveling medical professionals, go to the hospital job recruitment page. If there are a large number of openings, then they are likely filling that need with travelers.See how much the property will cost a month. Principal, interest, taxes and insurance. 280k with 20% down at 7% = about $1500 a month for PI. Taxes are public record, and are about $125 a month (will go up after purchase a bit). Insurance shouldn't be bad as this is a condo, so a lot of potential risk is covered by the HOA insurance. Add another $20 a month for that.
Add in HOA fees ($300 a month; shown in your link), Gas, electricity, high-speed internet, water, trash and snow removal. A lot of those costs are probably part of the HOA dues, so let's say and average of $175 a month for electricty and another $80 for internet. You have a better idea of those costs as I do not live in IL.
So, costs so far are $2200. Play around with that with your more accurate estimates.
Rentometer estimates that rents in the area for a 2/1.5+ are around $2500. Using a 1.5x estimate for what a MTR rental rate might be gives us $3,750. Then I would compare that estimate with what Furnishedfinder.com has in the area. In the immediate are there are 3 houses on FF that are going for 4000 to 6000 a month, but they are 3 BR to 4BR SFHs. I would then adjust down the original MTR rental estimate based on those findings. Let's say $3200?
$3200- $2200 = $1000 month of profit, right? Not really. Put aside some money for fixing things up around the condo from time to time ("CapEx"; 5% to be conservative), and some for vacancy (maybe 10% of the monthly). That leaves ($3200 x .85) - $2200 = $520 a month in profit. Bear in mind, you will have to tweak these numbers based on what you think are proper estimates. For instance, I suspect vacancy might be a little higher based on the train tracks running directly behind the condo. That might be normal and expected in IL. I don't know.
So for $56,000 dollars down plus (an estimated) $7,500 in closing costs plus another $5000 in furnishings, you get an asset that produces about $500 dollars a month. $68,500 / $500 per month = about 12.4 years to get back the intial investment.
So why do people bother if it takes 12 years to get back your investment on what looks a pretty good monthly profit? Well, in that 12 years, your tenants will have paid down about $35,000 in principal (aren't amortization schedules depressing?), and at a 2% average yearly increase in value of the condo, it will be worth about $60,000 more than when it was purchased. These numbers get better if the area is becoming more in demand over time as rents will go up and the condo will appreciate faster than 2%.
*Now we come to the hardest part*: does this property have "potential"? I have no idea primarily because deals are only "good" or "bad" in the context of what the goals of the owner are. Would I self-manage this deal to earn $500 a month allowing me to own this property in 15, 20 or 30 years? Yes. Should you? Again, I have no idea. that's a much more personal decision, and that is probably why Jonathan Greene asked for more information from you about your experience level, especially since you wrote "I am totally out of my league understanding the possibilities of an MTR".To be successful in the MTR space, I would recommend that any owner or operator strive to provide the best customer experience possible. Potential residents can tell if the owner/operator authentically cares about providing that A+ experience, and they will vote with their wallet regarding where they stay.
So going back to my original sentence, here is where my grace runs out. I have a challenge for the OP. I took over an hour, on a Sunday,to click a suspicious link in order to look over your property, to learn a little bit more about the West Chicago sub-market, to analyze a deal for a stranger; and to present a rough algorithm for how to analyze the numbers of a deal so that a general process could extrapolated for the next property you consider. All of that was done without thought for any return to me. It was done simply because I enjoy helping in my very limited way. If at any point in this admittedly large wall of text, you, OP, found yourself getting upset with me, then I would recommend you avoid the MTR space as you will find many similar opportunites to learn that you will not enjoy. LTRs are a great way to approach real estate, and it sounds like you are doing very well in that space. Keep crushing it there.
Thank you very much! - 1yBonnie LowPro MemberLender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
Quote from @Scott Meech:
Wasn't that the main point of the post? I gave an example of a property to start a conversation to learn more about MTR. It also is potential for someone who has expertise in MTR to connect. It didn't ask should I do this.
To answer your other question, yes I have LTR property that is doing quite well.
Appreciate the forum etiquette lesson. Perhaps some reciprocal is to tone it down and not come in hot as my teenagers call it!Hey, Scott. I'm sorry you got some unhelpful responses. I don't know why people take the time to NOT be helpful. I'm happy to take a look at your link and let you know some initial thoughts. You might find it helpful to join a group like THE MTR Connect, which I co-host with @Jamie Banks. It's a group that meets virtually every Friday from 9-10am PST and is specifically for MTR hosts. We have newbies and very seasoned investors in the group and the sole purpose is to help people with their properties, whether that is sourcing & qualifying markets, set up, trouble shooting or building a network of go-to resources. You can even share your link to the property or market you're considering and let folks weigh in in real time. We've helped a lot of our members trouble shoot and make minor tweaks to their properties to improve the performance. I'm sure our members would be happy to help you, too. PM me if you're interested - it's free - and I'll send you the link. Hang in there!
- 1yBonnie LowPro MemberLender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
Quote from @Scott Meech:
Thank you. Do you have suggestions on how best to do that research? Are there mid term rental sites to find them?Quote from @Jamie Banks:
Hi Scott,
When determining if a property is suited for MTR you should do some research on what brings people to the area who need to rent midterm.
You can always start by looking on Furnished Finder. This site says it's for travel nurses, but their users come from all walks of life and it's growing daily. go to https://furnishedfinder.stats and enter the city information. This will show you how many furnished units are currently listed on FF, their size and monthly rate as well as the number of searches. Then look at some of the competition to see what your property needs to offer in order to be competitive. You can also search Airbnb & look for 30+ day stays and do the same. Checking their calendar helps you determine if there is strong demand. If the calendar is booked, there's demand. If it's wide open, that should be a red flag. Are there extended stay type hotels in your area? If so, that's a good indicator that there's demand for MTRs. I'd encourage you to think more broadly than just hospital travelers. They can be a great source for tenants, but the world of people traveling who need furnished rentals is much, much larger than just traveling medical professionals.
- Real Estate Consultant · Reston, VA · Member since 2022 · 513 posts · 521 votes1y
@Scott Meech Furnished Finder is the largest and most well known MTR site. They have a stats page that can help you do some research about your market
I also use DPGO for stats because it’s free but Price Labs and Airdna are also paid alternatives
- Investor · Oswego, IL · Member since 2024 · 21 posts · 19 votes1y
Quote from @Bonnie Low:
Quote from @Scott Meech:
Thank you. Do you have suggestions on how best to do that research? Are there mid term rental sites to find them?Quote from @Jamie Banks:
Hi Scott,
When determining if a property is suited for MTR you should do some research on what brings people to the area who need to rent midterm.
You can always start by looking on Furnished Finder. This site says it's for travel nurses, but their users come from all walks of life and it's growing daily. go to https://furnishedfinder.stats and enter the city information. This will show you how many furnished units are currently listed on FF, their size and monthly rate as well as the number of searches. Then look at some of the competition to see what your property needs to offer in order to be competitive. You can also search Airbnb & look for 30+ day stays and do the same. Checking their calendar helps you determine if there is strong demand. If the calendar is booked, there's demand. If it's wide open, that should be a red flag. Are there extended stay type hotels in your area? If so, that's a good indicator that there's demand for MTRs. I'd encourage you to think more broadly than just hospital travelers. They can be a great source for tenants, but the world of people traveling who need furnished rentals is much, much larger than just traveling medical professionals.
Another great response!
- Investor · Oswego, IL · Member since 2024 · 21 posts · 19 votes1y
Quote from @Jamie Banks:
@Scott Meech Furnished Finder is the largest and most well known MTR site. They have a stats page that can help you do some research about your market
I also use DPGO for stats because it’s free but Price Labs and Airdna are also paid alternatives
Thank you as well!
Quote from @Scott Meech:
Wasn't that the main point of the post? I gave an example of a property to start a conversation to learn more about MTR. It also is potential for someone who has expertise in MTR to connect. It didn't ask should I do this.
To answer your other question, yes I have LTR property that is doing quite well.
Appreciate the forum etiquette lesson. Perhaps some reciprocal is to tone it down and not come in hot as my teenagers call it!Quit being offended. You're the typical new poster here that asks for help, then gets mad when constructive feedback comes.
Those questions posed will help understand where you're coming from and going. Do you own properties? Are you a landlord? Have you looked up other MTRs and how they work, and is this the direction you want to go?
We don't owe you a thing, so appreciate constructive feedback when it comes.- Investor · Oswego, IL · Member since 2024 · 21 posts · 19 votes1y
Quote from @V.G Jason:
Quote from @Scott Meech:
Wasn't that the main point of the post? I gave an example of a property to start a conversation to learn more about MTR. It also is potential for someone who has expertise in MTR to connect. It didn't ask should I do this.
To answer your other question, yes I have LTR property that is doing quite well.
Appreciate the forum etiquette lesson. Perhaps some reciprocal is to tone it down and not come in hot as my teenagers call it!Quit being offended. You're the typical new poster here that asks for help, then gets mad when constructive feedback comes.
Those questions posed will help understand where you're coming from and going. Do you own properties? Are you a landlord? Have you looked up other MTRs and how they work, and is this the direction you want to go?
We don't owe you a thing, so appreciate constructive feedback when it comes.Do you feel better for jumping in and adding no value other than adding oxygen to a fire? I feel pretty good about my original response. Have a great day.
Quote from @Scott Meech:
Quote from @V.G Jason:
Quote from @Scott Meech:
Wasn't that the main point of the post? I gave an example of a property to start a conversation to learn more about MTR. It also is potential for someone who has expertise in MTR to connect. It didn't ask should I do this.
To answer your other question, yes I have LTR property that is doing quite well.
Appreciate the forum etiquette lesson. Perhaps some reciprocal is to tone it down and not come in hot as my teenagers call it!Quit being offended. You're the typical new poster here that asks for help, then gets mad when constructive feedback comes.
Those questions posed will help understand where you're coming from and going. Do you own properties? Are you a landlord? Have you looked up other MTRs and how they work, and is this the direction you want to go?
We don't owe you a thing, so appreciate constructive feedback when it comes.Do you feel better for jumping in and adding no value other than adding oxygen to a fire? I feel pretty good about my original response. Have a great day.
Do you feel good making a post about nothing, and avoiding tangible discussion that'll help with your pursuit?
Answer those aforementioned questions. It's only posed to help you, yet you take things so personal. You'll go nowhere in life, but that's no change for you. Enjoy that life.- Investor · Oswego, IL · Member since 2024 · 21 posts · 19 votes1y
Quote from @V.G Jason:
Quote from @Scott Meech:
Quote from @V.G Jason:
Quote from @Scott Meech:
Wasn't that the main point of the post? I gave an example of a property to start a conversation to learn more about MTR. It also is potential for someone who has expertise in MTR to connect. It didn't ask should I do this.
To answer your other question, yes I have LTR property that is doing quite well.
Appreciate the forum etiquette lesson. Perhaps some reciprocal is to tone it down and not come in hot as my teenagers call it!Quit being offended. You're the typical new poster here that asks for help, then gets mad when constructive feedback comes.
Those questions posed will help understand where you're coming from and going. Do you own properties? Are you a landlord? Have you looked up other MTRs and how they work, and is this the direction you want to go?
We don't owe you a thing, so appreciate constructive feedback when it comes.Do you feel better for jumping in and adding no value other than adding oxygen to a fire? I feel pretty good about my original response. Have a great day.
Do you feel good making a post about nothing, and avoiding tangible discussion that'll help with your pursuit?
Answer those aforementioned questions. It's only posed to help you, yet you take things so personal. You'll go nowhere in life, but that's no change for you. Enjoy that life.Seriously. You are adding zero value to a discussion that actually has multiple great helpful responses. Peace.
- 1yBonnie LowPro MemberLender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
Quote from @Scott Meech:
I found this property on Zillow and think it has potential for MTR or LTR as it is right by the hospital. However, I am totally out of my league understanding the possibilities of an MTR. Property near Hopsital in great area!
Scott, I took a quick look at the property link. I can't speak to the location or the type of visitor who might be traveling to your area so I'm addressing the property itself only. This is a nice looking unit in what appears to be a well kept building. A lot of people assume the rent-by-room model works best for travel nurses. It can, but I find that the majority prefer their own space. Travel nurses have also seen drastically reduced per diem rates so they don't like paying for additional space they can't use. I would look for other types of travelers in addition to traveling medical professionals. The property configuration is nice and having in-unit washer and dryer will definitely be in your favor. Indoor parking will surely be a bonus. HOA's can be a negative so be sure to check the HOA regulations to see if they have any rules around 30+ day stays. Even if your town or jurisdiction has regulations, the HOA can choose to pass rules that are more restrictive. If pets are allowed by the HOA I would strongly recommend you consider allowing pets as more than 50% of travelers travel with their pets and that will make your priority more desirable. I personally allow pets and have never had a problem situation. If you haven't already, consider reading 30 Day Stay by Sarah D. Weaver and Zeona McIntyre. It's packed with great information about starting out in MTR. Best of luck to you!
- Investor · Oswego, IL · Member since 2024 · 21 posts · 19 votes1y
Quote from @Bonnie Low:
Quote from @Scott Meech:
I found this property on Zillow and think it has potential for MTR or LTR as it is right by the hospital. However, I am totally out of my league understanding the possibilities of an MTR. Property near Hopsital in great area!
Scott, I took a quick look at the property link. I can't speak to the location or the type of visitor who might be traveling to your area so I'm addressing the property itself only. This is a nice looking unit in what appears to be a well kept building. A lot of people assume the rent-by-room model works best for travel nurses. It can, but I find that the majority prefer their own space. Travel nurses have also seen drastically reduced per diem rates so they don't like paying for additional space they can't use. I would look for other types of travelers in addition to traveling medical professionals. The property configuration is nice and having in-unit washer and dryer will definitely be in your favor. Indoor parking will surely be a bonus. HOA's can be a negative so be sure to check the HOA regulations to see if they have any rules around 30+ day stays. Even if your town or jurisdiction has regulations, the HOA can choose to pass rules that are more restrictive. If pets are allowed by the HOA I would strongly recommend you consider allowing pets as more than 50% of travelers travel with their pets and that will make your priority more desirable. I personally allow pets and have never had a problem situation. If you haven't already, consider reading 30 Day Stay by Sarah D. Weaver and Zeona McIntyre. It's packed with great information about starting out in MTR. Best of luck to you!
Fantastic information again. I have a ton to learn before leaping for sure!
- Member since 2024 · 1 post · 2 votes1yGood advice. I used to travel and preferred 1-2 bedrooms that allowed pets. A W&D in unit was a big bonus since I worked night shift.
Quote from @Bonnie Low:
Quote from @Scott Meech:
Thank you. Do you have suggestions on how best to do that research? Are there mid term rental sites to find them?Quote from @Jamie Banks:
Hi Scott,
When determining if a property is suited for MTR you should do some research on what brings people to the area who need to rent midterm.
You can always start by looking on Furnished Finder. This site says it's for travel nurses, but their users come from all walks of life and it's growing daily. go to https://furnishedfinder.stats and enter the city information. This will show you how many furnished units are currently listed on FF, their size and monthly rate as well as the number of searches. Then look at some of the competition to see what your property needs to offer in order to be competitive. You can also search Airbnb & look for 30+ day stays and do the same. Checking their calendar helps you determine if there is strong demand. If the calendar is booked, there's demand. If it's wide open, that should be a red flag. Are there extended stay type hotels in your area? If so, that's a good indicator that there's demand for MTRs. I'd encourage you to think more broadly than just hospital travelers. They can be a great source for tenants, but the world of people traveling who need furnished rentals is much, much larger than just traveling medical professionals.
- 1yJonathan GreeneBusiness MemberReal Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
This entire post is a classic example of someone asking others for help and giving nothing in return. The people who are helping are genuinely nice people, but NOBODY should be clicking a random link left on an internet forum, that is just common sense. You got a lot of great advice, but you came here and didn't set the table. These people are so nice that they are still helping you even though most of your responses are just overglamorizing them or profusely thanking them because they didn't ask you any questions.
The other problem is people who tell you how bad they feel for you because other people didn't light a scented candle for your two-line post and spend an hour of their own time trying to help you when you have a new profile, with new photo, and no information.
You lucked out with some nice people in here @Scott Meech, but it's because of them that you have information not because you brought anything to the table other than a hand out. If you answered all of the questions I asked you in the beginning, you would have a way better roadmap.
- 1yTravis TimmonsPro MemberRental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
@Jonathan Greene ease up, man. He's asking for help just like most of us did at one point. Loads of strangers with no motive other than being kind helped me out when I was getting started. Also, I like your podcast; it's been really helpful.
The need to point out what someone doesn't know and how poorly they have constructed a forum post doesn't help anyone. Either respond with something helpful or move on. If the original poster got crickets, he would know it was a waste of time.
@Scott Meech I'd be happy to help if you think that I can be a resource. I have absolutely nothing to sell and have been self managing MTRs for 5 years. My advice for MTRs would be to have some activity or furnished tenant source other than just a hospital. The travel nurse crowd only makes up about 1/3 of our tenants now. It used to be 80-90%.
- 1yJonathan GreeneBusiness MemberReal Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
Quote from @Travis Timmons:
@Jonathan Greene ease up, man. He's asking for help just like most of us did at one point. Loads of strangers with no motive other than being kind helped me out when I was getting started. Also, I like your podcast; it's been really helpful.
The need to point out what someone doesn't know and how poorly they have constructed a forum post doesn't help anyone. Either respond with something helpful or move on. If the original poster got crickets, he would know it was a waste of time.
@Scott Meech I'd be happy to help if you think that I can be a resource. I have absolutely nothing to sell and have been self managing MTRs for 5 years. My advice for MTRs would be to have some activity or furnished tenant source other than just a hospital. The travel nurse crowd only makes up about 1/3 of our tenants now. It used to be 80-90%.
You are wrong on it not helping them, but I appreciate the response. One of the major factors in why people can't find a peer group or a mentor or others to learn from is because they ask for a lot and give nothing. They want people to look at a link and spend time doing work they should have done to ask a better question. They give no background. They give no experience. They just want to take.
I also don't agree that the only way to help someone is to respond with something nice or helpful. The real estate investing world is not back pats when you are going for deals. You have to know more than your competition to win and find the best deals. Telling everyone it will be easy is participation trophy culture.
As I said multiple times, if the original post had more information in it about him and his plans, he would have even better answers. Now people are spending their time freedom not even sure they are telling him what he wants to know.
- 1yTravis TimmonsPro MemberRental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
@Jonathan Greene no mention of a participation trophy and not making it seem easy. I'm just a guy that wants to help. This "give value in return" is mostly nonsense. Someone either takes an interest and helps or they don't.
If you think it is stupid, don't respond. He's a guy looking for help from experienced MTR operators, and a few of us responded. That's the whole point of the forums.
The "you lucked out because of nice people" is the idea. I also lucked out because of some nice people several years ago. I am now paying that forward and doing what I can to help. Criticizing a new investor for being new seems silly. You're also somehow being critical of people being nice.
@Travis Timmons the issue isn't being of value/service. The issue is giving value/service by virtue of honesty, and getting confronted by that.
The problem that I notice is people get very offended when they don't hear what they want to hear. @Scott Leech and that lady in the other thread about DTI @Marjorie Patton.
As soon as they don't hear what they want to hear, they tune their ears out and get defensive. Classic american folks that think life does not apply to them.
We're more than willing to help, **** I got no service to sell and nothing to offer. But I have mountains of experience to share; and I'll absolutely share it, you may not like what you have to hear and that comes with territory. I am only here to give, I don't ask anything of anybody. But for sure don't come in pushing back on real advice when your feelings get hurt, understand that's apart of the process. They wonder why our next generations are turning into folks that can't handle adversity, it's because they cannot.
I expect nothing from Mr. Leech or Ms. Patton, but don't ask stuff and get mad when isn't what you want to hear. Buck up.
- 1yJonathan GreeneBusiness MemberReal Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
Quote from @Travis Timmons:
@Jonathan Greene no mention of a participation trophy and not making it seem easy. I'm just a guy that wants to help. This "give value in return" is mostly nonsense. Someone either takes an interest and helps or they don't.
If you think it is stupid, don't respond. He's a guy looking for help from experienced MTR operators, and a few of us responded. That's the whole point of the forums.
The "you lucked out because of nice people" is the idea. I also lucked out because of some nice people several years ago. I am now paying that forward and doing what I can to help. Criticizing a new investor for being new seems silly. You're also somehow being critical of people being nice.
Go back to the top and read his post and my response. I told him he shouldn't post a link because most people will be worried it's phishing (completely valid and smart). Then I told him if he doesn't know enough to even ask a full question, he probably doesn't have the reps to buy this now (obviously true and not debatable). Then I asked him three questions to help him ask better questions and get better answers. This is WAY better advice than the other things in the forum because when you are in the real world and you show up and ask strangers for help and have done no research, laid no background, and didn't even try to do anything, they won't help you.
Every one of the most well known coaches in the entire world will all tell you the same things. Come prepared, ask better questions, and you will get better answers. This is exactly how I responded. If you think a Tony Robbins or Zig Ziglar would respond to a question that vague, you are crazy. And they are there to help people. So am I. I am not there to baby them and do their job for them.
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