Duplex with one side leased

Contractor · Pensacola, FL · Member since 2017 · 326 posts · 157 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?

0 Reply

949 views

Most Popular Reply

Jeff Roth

Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 471 posts · 260 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!

3 Reply

See this reply in the discussion

14 Replies

Jump to latestLatest

Sort by

Gregory AcsPro Member
Lender · MD · Member since 2025 · 244 posts · 91 votes
4w
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.
1 Reply
Jeff Roth
Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 471 posts · 260 votes
4w
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!
3 Reply
- Jeremy England
  OP
  Contractor · Pensacola, FL · Member since 2017 · 326 posts · 157 votes
  3w
  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.
  0 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
4w
Airbnb will have better data to project rents AND vacancy.
[email protected]248-209-6824
Logical Property Management4.9469 Reviews
Website View Page
1 Reply
Matthew Tregoning
Property Manager · Melbourne, FL · Member since 2019 · 464 posts · 173 votes
3w
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?
0 Reply
- Jeremy England
  OP
  Contractor · Pensacola, FL · Member since 2017 · 326 posts · 157 votes
  3w
  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.
  0 Reply
Melissa HaworthBusiness Member
Real Estate Agent · The Panhandle | The Emerald Coast | Panama City Beach | Destin · Member since 2017 · 269 posts · 103 votes
2w
Jeremy, smart to test a mid-term rental against the leased side instead of guessing. Downtown-adjacent Pensacola can work, but demand shifted when Baptist moved. What's still steady is military temporary duty, corporate and insurance relocations, contractors on multi-month jobs, and people between homes. I'd plan on 70 to 80% occupancy rather than the full asking rent, and count furnishings, utilities, cleaning, and gaps between stays before comparing to a long-term lease. Happy to share what's actually booking mid-term near downtown versus near the bases.
[email protected]469-658-2869
0 Reply
- Jeremy England
  OP
  Contractor · Pensacola, FL · Member since 2017 · 326 posts · 157 votes
  2w
  Thanks. I sent a connection request to message you. I did end up leasing it long term but am very interested in the mid term market bookings downtown. I have another sf under construction right now that I may end up trying to rent.
  0 Reply
Nick Pavlakis
Investor · Seattle · Member since 2018 · 35 posts · 5 votes
3d
Since the duplex is leased now, the new build gives you time to test demand before buying furniture. I'd ask the housing office and relocation contacts for actual requests near that address. Keep furnishing costs separate when you compare returns; the higher monthly rent has to pay those back too.
1 Reply
John RacinePro Member
Rental Property Investor · Casselberry, FL · Member since 2008 · 99 posts · 57 votes
3d
@Jeremy England sounds like the long-term lease was the right call for the duplex, and the new single-family is a cleaner test anyway.
On your insurance question, since I don't think anyone answered it: you usually don't go to the insurer directly. Carriers hand displaced policyholders (fire, water, storm) to temporary housing companies that place them under the policy's additional living expense (ALE) coverage. ALE Solutions, CRS Temporary Housing and Sedgwick are a few of the bigger ones. You register the property with them, and when a claim comes in near you they reach out to see if it's available. Local restoration and water/fire mitigation companies are also worth knowing, because they see displaced families early. Being on a vendor list doesn't guarantee placements, though, so treat it as one lead source, not the plan.
For the new build, a few things from running most of my units at 30+ days:
Don't rely on one demand source. With the hospital no longer nearby, you want two or three: the base housing office you already have, insurance, contractors on multi-month jobs, people relocating. They don't all slow down at the same time.
List where guests actually book. For me, Airbnb is still where most 30+ day guests book. I put "30 day+" in the title and set 30-60 day minimums. Furnished Finder has been more of a lead source than a booking channel, which may explain the lots-of-inquiries, few-qualified pattern you saw. Listing on Zillow as a furnished rental has generated some activity too.
Leave room for extensions. I keep 60 days open after each stay. A construction crew in one of my units extended four times and stayed over 90 days. Insurance stays often extend too, because repairs run long.
Use the duplex as your floor. You've got the perfect comparison sitting right there. If a slow furnished month, minus utilities, furniture and cleaning, doesn't clearly beat that lease, lease the new one too.
When is the single-family expected to finish, and is it closer to the bases or downtown?
0 Reply
Jeremy England
OP
Contractor · Pensacola, FL · Member since 2017 · 326 posts · 157 votes
3d
Great info. I wouldn't say the hospitals are not nearby. They are both within a 10 minute drive of the property. Google Maps has it at 8 minutes for Baptist hospital and 9 minutes for Sacret heart

I'll have it completed by Dec 1. Oh its close to downtown for sure. 15 minute bike ride to Palafox place (the hub for restaurants and nightlife) (2 miles)
0 Reply
John RacinePro Member
Rental Property Investor · Casselberry, FL · Member since 2008 · 99 posts · 57 votes
3d
@Jeremy England thanks for the correction, that's a better setup than I took from your first post. Two hospitals within 10 minutes is a real demand base, and having both means you're not tied to one employer's contracts.
A Dec 1 finish works in your favor if you get ahead of it. I'd have it photographed and listed before it's done, with the 30-day minimum and "30+ days" in the title, so the first inquiries are already coming in by the time it's finished. If December sits open, that's where short stays can fill the gap, as long as they're allowed at that address.
Being 2 miles from Palafox helps with a second kind of guest too: people relocating who want to live in the city for a month or two before they buy, and remote workers. In the listing I'd lead with drive times to both hospitals and the base, then downtown.
And since the duplex went long-term, the new house will be your first furnished data point. Track occupancy, average stay length and extensions month by month. In six months you'll know whether it beats what a lease would have paid, using your own numbers instead of Furnished Finder asking rents.
How many bedrooms is the single-family?
0 Reply
Jeremy England
OP
Contractor · Pensacola, FL · Member since 2017 · 326 posts · 157 votes
3d
3bed 2 ba 1200 sf
0 Reply
John RacinePro Member
Rental Property Investor · Casselberry, FL · Member since 2008 · 99 posts · 57 votes
2d
@Jeremy England a 3/2 is a good size for this. It opens you up to guests a 1BR can't take:
- Two or three travel nurses splitting the house. With two hospitals that close, that's realistic, and the second bathroom matters more to them than square footage.
- A medical or military family on temporary orders, where one person is working and the spouse and kids come too.
- Insurance-displaced families, who need the bedrooms and almost always stay longer than the first estimate.
- Small contractor crews on multi-month jobs.
For furnishing, I'd set it up for sharing as much as for families. That means a real bed and dresser in every bedroom (no daybed in an office), a desk in at least one room, and enough fridge and pantry space for more than one person's groceries. At 30+ days, fast Wi-Fi and an in-unit washer and dryer are expected, not extras.
One thing worth adding is a sleeper sofa or a rollaway. That raises the headcount the listing can show, which helps your rate on short stays. A 30-day guest may not want or use it, so don't count it as a bedroom when you price for monthly stays. Think of it as a bonus for the short stays that fill gaps between your longer bookings.
On pricing, I wouldn't start from the $2,200 Furnished Finder figure you pulled for the duplex. Search Airbnb for 30+ night stays near both hospitals and filter to 3 bedrooms, so you're comparing against what a group or family would actually book. Then check that against what the house would lease for unfurnished. That's your floor.
Good luck getting it finished. I'd like to hear how the first few months go.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.