Mid-Term Rental or Traditional Rental??? That is the question.

[Jennipher Jess]

Hello BP,

I really need help and opinions! My husband and I need some assistance. We just closed (literally) on a 3/2 townhome (1691 sqft) in Iron Horse Village in Mesquite, TX. Since we put a deposit down on the property, the rental rate has dropped significantly, due to the fact that several investors purchased townhomes at the same time, driving prices down. They sold to a pool of 20 investors (which we were not a part of) and in a month prices that were looking like $2700-2800 are now looking like $2200-$2400.

Note - The Iron Horse Community is currently building shops, restaurants, green space for dogs, an amphitheater, and more right across the street from our unit (and the other townhomes as well). Those should be completed in 2-3 years (which is when we would consider selling).

When we originally went in on the deal we were looking to sell in a few years, as they are building a community of shops/restaurants across the street from the townhome and just take a loss until then, but these numbers are dramatically lower than anticipated around $700/month in losses.

All this said we CAN take the loss and find a renter for a 12-month lease at say $2400/month OR we were considering a mid-term rental in the area and furnishing the townhome. This is all new to both of us and we are looking for any and all advice from the best places to furnish the MTR if we go that route, to the best options with leasing.

Thank you in advance :)

Jen

[Colleen F.]

@Jennipher Jess the first thing you need to do is assess demand in your area for furnished rentals. Look at furnished finder and look at what is on airbnb before you furnish. Add the costs including utilitlies and furnishing it and see if you will get a bigger net by MTR. Remember it isn't about the rent, it is what you net at the end of the day. Also is STR a possibility because that will likely net more. What is the size of the unit? Is renting more long term by the room a possibility? Look at all your options by the numbers before you make up your mind.