Duplex with one side leased

Contractor · Pensacola, FL · Member since 2017 · 317 posts · 156 votes

Have a brand new duplex we just built and one side leased quickly with a long term tenant. The other side has not been leased yet. We are considering furnishing it and mid term renting it. The location is downtown adjacent, 2 miles from the central hub of Pensacola. Location isnt a big draw for students. Its miles from The university. It used to be good for nurses. Hospital was a block away but the hospital now moved across town.

From what i gather looking at furnished finder we can expect about 2200/mo. However i dont know what kind of vacancy rate we should expect. Plus we would then need to furnish, pay utilities, etc.

What makes a good mid term

Rental prospect?

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Jeff Roth

Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 466 posts · 256 votes

Hi Jeremy from Pensacola, FL-

Great question! You have a brand new duplex with one side leased with a long-term tenant and are thinking about turning the other unit into a furnished mid-term rental.

You are looking at what is around the property to drive demand for a mid-term rental. Also, consider working with insurance companies providing housing for one of their clients. People moving to the area may want a place to stay while they are considering where they want to settle and may be another market you could tap into networking with relocation specialist Realtors in the area. Finally, contact local employers and ask if they have contract workers needing a furnished place to stay for an extended period of time.

To Your Success!

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Gregory AcsPro Member
Lender · MD · Member since 2025 · 203 posts · 77 votes
1w
For me, a good mid term rental starts with demand, not just the property itself. I’d want to know who your target tenant is and whether there’s a consistent source of them nearby, such as healthcare professionals, military personnel, corporate relocations, or people between homes. Pensacola tends to attract all of those groups, so the opportunity is definitely there.
If the numbers still work after factoring in furnishings, utilities, cleaning, and some vacancy, it could be a great option to test. You can always compare it to a traditional long term lease after a few months and see which strategy performs better. If you ever decide to refinance or leverage the property for another investment, I’d be happy to help you explore your financing options.
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Jeff Roth
Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 466 posts · 256 votes
1w
Hi Jeremy from Pensacola, FL-
Great question! You have a brand new duplex with one side leased with a long-term tenant and are thinking about turning the other unit into a furnished mid-term rental.
You are looking at what is around the property to drive demand for a mid-term rental. Also, consider working with insurance companies providing housing for one of their clients. People moving to the area may want a place to stay while they are considering where they want to settle and may be another market you could tap into networking with relocation specialist Realtors in the area. Finally, contact local employers and ask if they have contract workers needing a furnished place to stay for an extended period of time.
To Your Success!
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- Jeremy England
  OP
  Contractor · Pensacola, FL · Member since 2017 · 317 posts · 156 votes
  3d
  When you say "working with insurance companies" who do you speak with at insurance companies to do that? We already listed the property with the navy base housing office. Ill look into relocation specialists.
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1w
Airbnb will have better data to project rents AND vacancy.
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Matthew Tregoning
Property Manager · Melbourne, FL · Member since 2019 · 288 posts · 129 votes
3d
The hospital moving is a pretty big detail. I'd ask a few local relocation agents what people are actually requesting near your side of town: dates, bedrooms, pets, parking. That gives you something more useful than another furnished listing's asking price. Are you getting inquiries on the vacant side now, or is it quiet altogether?
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- Jeremy England
  OP
  Contractor · Pensacola, FL · Member since 2017 · 317 posts · 156 votes
  3d
  Lots of people inquire. Few apply, fewer have qualified.
  I think it is a good opportunity for testing the mid term market because the other side is leased long term and providing a steady stream of income. I could do a side by side comparison of the roi. But im still on the fence. Im giving it two more weeks on the market for long term rentals then we are going to furnish it and see how it goes.
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