Looking for Advice on Mid-Term Rental Strategy in Sacramento, CA

Sacramento, California
Medium-Term Rentals
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Looking for Advice on Mid-Term Rental Strategy in Sacramento, CA

Srey Leth Timmer
Member since 2025 · 8 posts · 9 votes

Hi BiggerPockets community,

I’m in the process of purchasing my first rental property. I’m very interested in exploring mid-term rentals and would love to hear from investors and property managers who have experience in this space.

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Sean O'KeefePro Member
CPA | Accepting new clients | 50 States · Member since 2022 · 1k+ posts · 871 votes
1y

Following - I'm based in California

[email protected]628-241-0888
2Reply
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  • Noah Laker
    Real Estate Broker · Sacramento, CA · Member since 2021 · 517 posts · 408 votes
    1y

    I'm a local broker investor, and PM, we manage about 100 STR/MTR properties between Sacramento, San Diego, and Scottsdale. Midterm can be a great strategy, but it's advisable to blend it with STR (by obtaining a permit) so that you can fill in gaps between bookings.


    If you're in a good area, ideally close to the university, or a hospital, or midtown, then you'll do just fine. Sacramento has quite a bit of demand for this housing product. 

    By the way, STR opens the door to huge tax benefits since the new tax legislation passed, so if you're a high-income W2 worker, you might explore that as well before settling on MTR exclusively.

    1Reply
    • Srey Leth Timmer
      OP
      Member since 2025 · 8 posts · 9 votes
      1y

      @Noah Laker Thanks for sharing that—it’s super helpful to hear from someone managing so many properties across those markets. I’ll definitely look into blending MTR with STR to help cover vacancies. My property is 15 min away from California State University, Sacramento. The point about STR tax benefits is a great callout too; I hadn’t considered how much that could impact things as a W2 earner. Really appreciate the insight.

      1Reply
    • Hyunsuk Han
      Member since 2023 · 4 posts · 1 vote
      7mo
      Quote from @Noah Laker:

      I'm a local broker investor, and PM, we manage about 100 STR/MTR properties between Sacramento, San Diego, and Scottsdale. Midterm can be a great strategy, but it's advisable to blend it with STR (by obtaining a permit) so that you can fill in gaps between bookings.


      If you're in a good area, ideally close to the university, or a hospital, or midtown, then you'll do just fine. Sacramento has quite a bit of demand for this housing product. 

      By the way, STR opens the door to huge tax benefits since the new tax legislation passed, so if you're a high-income W2 worker, you might explore that as well before settling on MTR exclusively.


       what is the new tax legislation you are referring to?

      0Reply
  • Julius VincentBusiness Member
    Tax Strategist | CPA, MBA + Wharton FP&A | CFO-Level Planning · Houston, TX · Member since 2025 · 157 posts · 172 votes
    1y

    Hey @Srey Leth Timmer - Great points from @Noah Laker! I’d just add one tax nuance since you mentioned mid-term vs. short-term. The IRS generally treats mid-term rentals like long-term rentals, so you’ll get the normal deductions (mortgage interest, property taxes, furnishings, etc.). Short-term rentals, on the other hand, are treated as an active business if the average stay is 7 days or less and you materially participate, which is where those extra tax benefits come in.

    Either way, Sacramento’s demand looks solid. So it really comes down to what fits best with your lifestyle and how hands-on you want to be.

    [email protected]281-407-7353
    Horizon Wealth & Tax Advisors510 Reviews
    WebsiteView Page
    0Reply
    • Srey Leth Timmer
      OP
      Member since 2025 · 8 posts · 9 votes
      1y

      @Julius Vincent That’s a really helpful clarification—thank you for breaking down the tax difference between MTRs and STRs. It definitely gives me more to think about in terms of how hands-on I want to be versus the potential tax benefits. I appreciate your time.

      0Reply
  • Sean O'KeefePro Member
    CPA | Accepting new clients | 50 States · Member since 2022 · 1k+ posts · 871 votes
    1y

    Following - I'm based in California

    [email protected]628-241-0888
    2Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 930 votes
    1y

    @Srey Leth Timmer

    Hi Srey,

    Mid-term rentals can be a great strategy if you find the right market. In the Midwest, there are cities where tenant demand is steady, rents are predictable, and turnover is lower than typical short-term rentals. It’s often easier to manage remotely if you set up a reliable local property manager and have systems for keyless entry, cleaning, and maintenance.

    Focus on areas with strong job growth, universities, or hospitals, as they consistently feed mid-term tenants. Planning for minor updates upfront—like fresh paint, durable flooring, and functional appliances—also helps make your property attractive for longer stays.

    [email protected]614-418-6081
    0Reply
    • Srey Leth Timmer
      OP
      Member since 2025 · 8 posts · 9 votes
      1y

      @Arman Ahmed Thanks for sharing—great points. I like the idea of targeting areas with steady tenant demand, like universities and hospitals. My property is a brand-new home, so hopefully I won’t need to handle any repairs upfront. The Midwest perspective is really interesting too; I’ll definitely keep that in mind as I evaluate different markets. I appreciate the insight!

      0Reply
  • Scott ScovilleBusiness Member
    Real Estate Agent · Sacramento, CA · Member since 2019 · 497 posts · 272 votes
    1y

    Hey Strey, MTR's are doing well in Sacramento, but it's location dependant. I've built, owned, and operated MTR's and happy to discuss the good, bad, and ugly of the MTR world. I'll DM you. 

    [email protected]415-933-2202
    Scoville Realty & Investments LLC
    WebsiteView Page
    0Reply
    • Srey Leth Timmer
      OP
      Member since 2025 · 8 posts · 9 votes
      1y

      @Scott Scoville I’m glad to connect with you who has local experience in Sacramento with MTR. Looking forward to chatting with you soon. 

      1Reply
  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    1y

    Mid-term rentals can be really solid if you’re in a market with steady demand, think areas near hospitals, universities, or corporate hubs. They usually bring higher rent than long-term leases and less turnover than short-term Airbnb-style setups. I’d recommend lining up a good property manager who understands mid-term leases, and make sure you’re clear on furnishing, utilities, and tenant expectations upfront. Location and tenant screening are everything here.

    [email protected]614-490-1163
    Kerlous Tadres | Reafco Real Estate540 Reviews
    WebsiteView Page
    1Reply
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