How do I know if my market is right for Traveling professionals?

Question

Hello,

I've been wanted to do a furnished rental for traveling professionals for years now.  I just can't seem to bit the bullet.  Is there a way to determine if my area is right for this type of rental?  This is for Dubuque, IA.  I listed Cedar Rapids in this posting because it's the closest of the options the drop down menu would provide. Thanks for your help.

Troy

Ron Brady · Answer

@Troy Froistad My wife and I learned from @Al Williamson, a veteran and expert at traveling professionals, that a "short cut" to knowing if your area is good for traveling professionals is to see if there are many Extended Stay America or other extended stay hotels in the area.  It is akin to Burger King locating near McDonalds--BK knows McDonalds already did the market research. Best wishes.

Janel Kolbo · Answer

You can also check Furnish Finders to see what is available in your area. Use the 'enemy method' on AirBnb to see how many similar homes are near you and what their demand is. There are traveling nurse groups on FB. Search Cedar Rapids and see if people are talking about it. I completely agree that you have to have options and the ability to pivot is key. Will it work as a LTR if need be?

Sara Levy-Lambert · Answer

Lookup Awning Airbnb Estimator, you'll be able to compare to nearby listings and see if you have a chance of standing out.

Troy F. · Answer

14,000 listings and 4,700 searches.  Those aren't very good odds.  Thank you to everyone for your priceless input.

Andrew Steffens · Answer

I would recommend using AirDNA to assist in analyzing your market.  They do not discern themselves with why each person rents (i.e. business or personal) and I do not think you should either.  You can just make your unit more business friendly to capture that market segment.

Michael Dumler · Answer

@Troy Froistad, blindly purchasing an investment and hoping it'll work out as an MTR without looking at any stats and/or lease comps is ill-advised. As others have noted above, hop on Furnish Finders and Airbnb to view MTR demand. If the search results aren't optimal, then the investment strategy may not be worth the risk. If you can find someone in your market who's implementing this strategy, then even better. Hope this helps!

Eliott Elias · Answer

See the inventory on furnish finder & airbnb. Is there any other competition? If so how booked up are they?

Jared Hottle · Answer

Hi @Troy Froistad would love to connect sometime I am in Waterloo. I believe Dubuque would be a great place for a travel rental. I think the key is to just do one. In smaller markets any of the analytics are not overly accurate. Find a property that will cash flow as a long-term rental, preferrably a smaller house and furnish it on a budget and see if it works. If it does great! If it does not you learn and make it a long-term.

Michael Baum · Answer

Hey @Troy Froistad. Getting started and jumping in is always a risk. Flippers never know what the market will look like 3-6 months after they take on a remodel. Rents can go down, etc. All you can do is put everything down on paper and see how it looks.

Ask yourself, what is in Dubuque, IA that would bring a traveling professional?

It does have a few colleges and universities, but nothing huge. It has a cancer center and other medical centers.

Real estate in Dubuque is quite reasonable with some of the places on the market for 9 months or more.

Pick an area near something and check prices. Also, reach out to the local hospitals and the schools to see how many visiting professionals they hire and for how long.

You can let them know you will be doing some rentals specifically for traveling pro's and see if they will use you.

How do I know if my market is right for Traveling professionals?

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