Need Help Deciding on Rental Strategy for New Construction in an "Up and Coming" Area

[Emily Runyan]

Purchased a new construction in my town - (Gallatin, a suburb of Nashville TN). Got a great price and decent rate with DSCR loan. The home is in a good location - 3 blocks from the up and coming revitalized "downtown square" with boutique shops, cute restaurants, coffee shops. It is also 4 blocks from a local (small-ish) hospital that employs about 10 to 12 travel nurses at a time.

The original strategy when purchasing the home was to purchase it as an MTR or STR. I listed it on FB marketplace as a Long Term Rental while it was under contract just to get the feelers out, and I got a lot of responses from people who wondered if I'd take Section 8.

The house is in an area with pockets of Section 8 housing. The area has a reputation for being "sketchy". But I believe this is an up and coming area - my home is one of the first tear-down-rebuilds in the area, with more remodels / tear-down-rebuilds in the works (there are a handful of remodels in the neighborhood). The downtown area has revitalized significantly in the last 5 years. I feel this house is on the early end of revitalization.

I also reached out to the hospital to try and connect with their travel nurse housing person, as well as a rural med school that sends med students to this hospital for their yearly rotations. I haven't had luck connecting with them yet to advertise my property to them as an MTR.

I've had it listed on Furnished Finder for a week - with no furnishings in it yet, but with comments that it will be furnished soon. I've had NO interest in it, not even to inquire about when it will be furnished.

My question is this: Do I take Section 8 or a lower rent for a year or so, and break even (the long term rent I could get would have me break even)? Or do I bite the bullet and invest in furnishing the property for a MTR or STR? I am nervous to furnish it then have it sit empty.

Are there strategies for furnishing or marketing it as an MTR/STR that will enhance the chances of it being booked?

I'd appreciate any other ways of looking at my rental strategy options. Thanks!

[James Wise]

Quote from @Bruce Woodruff:

Just because you may not do STR/MTR right away does not mean you are stuck with S8. Wait, be patient, and you will find a good regualr long-term renter.

Some people will do S8 because they've had decent luck. I would personally never touch it.

 Section 8 being viable is totally about the neighborhood. If you're in the ghetto, Section 8 tenants pose the lowest level of risk to the landlord when compared to cash paying tenants. If you're not in the ghetto, the opposite is true.