Julie,
I just wanted to thank you for the valuable insights you shared with us. There was so much that resonated with us, so I wanted to confirm everything you said.
1) Our target locations are near hospitals, and our target tenants are traveling medical professionals, but we also have other industries such as Amazon, construction, and military operating in our area who have reached out to us through Furnished Finder (FF). Consider your target tenants thoughtfully.
2) Finding the right neighborhood near our hospital took time to determine the quality of the neighborhoods. Thankfully, we live nearby because that had a small learning curve, but now we can turn onto a street and almost know immediately. Hiring a real estate photographer is one of the best choices we made. Now people know that they get what they see—a good home in a good neighborhood near work. Choose the neighborhood wisely and do not skip a professional RE photographer.
3) It took about two dozen house tours until we found a house where a single female could check in alone at night and feel safe getting from her car to the house. It’s the exact first thought that crossed my mind in every driveway we parked. Again, consider your target tenants thoughtfully.
4) Parking can be a make-or-break factor. Some neighborhoods had all yellow curbs, and our MTR investor-friendly agent quickly taught us that restricted parking would be problematic (especially with us house-hacking and needing our spots). We didn’t even bother touring inside those homes. Do not overlook the parking situation.
5) Considering the neighbors is great advice. Once we recognized that some houses in the neighborhood are family-dense, we felt comfortable about our MTR in the neighborhood. The first opportunity we had to meet our fence neighbors, we told them we were trying to provide good homes for hospital workers, and they liked what they heard. They even started bringing over baked goods for all of us, and a review of our MTR mentions the kindness of our neighbors. A recent interview on FF with an MTR operator in Maine highlighted the need to educate neighbors if possible. Build bridges with neighbors as an advocate for your MTR tenants.
6) New construction was going up near a hospital and we made an offer on a new home, but it was the HOA that caused us to walk away because their rules were 6-month lease minimums. We asked the builder to consider lowering it to 3 months, and after they ran it by their attorney, they found out that there were too many owner-occupants to make changes. If we hadn't carefully read the long document, life would be tougher now. Read every line of every HOA document.
7) There are many offerings in my area on FF, but when I study their calendars, I see that most either have a small handful of random night stays (STR) or they're empty. Using the enemy method, it's clear that most either don't invest in professional design or professional photographers. We had saved ahead of time for both, and that helped us keep our room occupied. Operators can no longer just tidy up their son's bedrooms, stand at the bedroom door, take a photo on their phone, and quickly upload it. Setting up a quality MTR takes investment money.
8) By far, the most important first step we took during the BP Rookie Bootcamp was to find a BP investor-friendly investor who clearly understood house-hacking and MTR together for our strategy. He educated us everywhere we went and became the perfect team member. Team up with an investor-friendly agent who knows your strategy well enough to teach it.
You’re right, Julie, many factors make a great MTR investment. Thank you for caring enough to share and teach.
Shannon
