Furnished Rentals Business Model

[Lee Gagnon]

Looking to invest in real estate full-time.  Of course like many new investors, building momentum takes many years to truly quit a 9-5 and invest exclusively, which is my ultimate goal.  I've been toying with the idea of buying nice multi's in towns/cities that are in college towns and densely populated cities/ towns in my state.  My goal would be to furnish the 3 or 4 unit buildings for corporate renters/college students, charging a premium for the furnished units, leading to increasing cash flow compared to an typical unfurnished rental, in turn building the momentum needed to then invest in unfurnished multi's at a large scale.  With that said, I do have liquid funds, and do have excellent credit needed for lending for the properties as well as furniture loans/ etc.

My question is - how realistic is it to build a business around buying multi's with the purpose of furnishing them or corporate/college renters, or renters who simply want everything furnished?  I rent a furnished in-law apartment currently with good rents.  The inquiry was impressive when listing the property.  Initial goal is to buy 15 3-4 plexes over the next 5 years.  Of course, I wouldn't want too many furnished units all over the state, due to the risk of over-supply.  Typical lease would be 3 months minimum, with ideal renters being yearly.  I understand this is a very niche business model.  Long term goal would be to purchase unfurnished multi's with remaining cash flow after paying my salary, and then cash-out refi on each unit after 5-7 years, increasing my unfurnished portfolio with leverage.

Any comments/suggestions/different perspectives are welcomed.