Updated 4 months ago on . Most recent reply
To MTR or LTR
I own two multi unit properties in Chicago: a three unit and a four unit. I recently purchased the 4 unit, this is where I am considering MTR.
The tenant in the garden unit left, she was there ten years, as such the unit needs a heavy turn over. The unit is a very spacious and light filled 2 bd/2ba. The building is very close to a large hospital which makes me think it may be a good candidate for MTR marketed to travel nurses, or family of hospital guests. I also have my first child on the way due in about a month so I am considering if I want to take on the work of furnishing the unit, marketing it, and generally learning something new while I am learning to be a dad. Currently I have long term tenants in my other 5 units ( I live in one).
For those that have done MTR can you share resources you used to help with furnishing the unit to be optimal for mid term? Is there anything that I may not be considering that could sway me to LTR vs MTR? Is a new strategy a foolish thing to take on with a newborn? I know leasing a LTR in Chicago can be challenging in the winter, is the same true for MTR? Anyway I know you don't have all the answers but hearing your experience with MTR will be immensely helpful!!!
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It is death by a thousand cuts furnishing a property. You're going to spend more than you plan on, but I'm a fan of spending $7000 to increase rents by $800 per month (I'm making numbers up, but you get the idea). We have been in the mid term game for 5-6 years. It was all travel nurses from 2020-2022, but only about 20% of our tenants are medical professionals over the last few years (and we are close to large hospitals).
While my rentals are not in Chicago (we are spread across 3 very different markets), I've found difficulty finding a tenant in the 2nd half of December, but that's about it. There is not the heavy lifting of moving all of your stuff when a mid term tenant moves in...even if the weather is terrible, you just show up with your bags. If you are priced right, you'll find a tenant.
Congrats on becoming a Dad...my general thought is to not commit to anything until you are home and settled. You just never know how it is going to go. If this is your first, it is far easier to manage than having other kids to parent and take care of with a newborn on top of that. If you and your wife are not working, have a good overnight schedule. and hopefully some family to help out, (these are famous last words, but...) you should have the bandwidth to furnish a unit across town.