Seasonal Employee Housing Rental ~ Anyone Doing This?

[Chris Penn]

Thank you for taking the time to read my post. I have stumbled upon a market that is desperately short on employee housing during 5 months of the year. The remaining 7 months of the year I can only hope to break even on costs as most people leave town. I may have a difficult time finding tenants during this time. However, the demand is so high during the tourist season, I have been offered $800 per room by one of the town's largest employers during the high season. Even better, the employer that is seeking housing has offered to sign a long term contract. The initial mentioning was 3 years but I believe 4 to 5 years is possible. Seasonal employees and their employers are overlooked as most property owners are concentrated on high yield, nightly rentals. Rental property is scarce as the population of the town is only 5 to 6k. Out of town property will not be considered by the employer. Additionally, the town has little room to expand as it is surrounded by mountains and a bay.

My current plan is to purchase a home in foreclosure, renovate during the off season, and move tenants in at the beginning of the high season. At the end of the contract I would sell the original property and reinvest the capital into a larger rental unit (I believe this is Brrr?). I will be contacting the city planner to inquire about any subsidies that may be offered to those who supply employee housing. The towns 2030 comprehensive plan states employee housing is one of the town's biggest hurdles moving forward. It may be a moonshot, but it is possible that some off season cash flow could come from the city itself.  

I apologise for the very "bare bones" outline of the business plan I am putting together. I am hoping to reach out to those who may have some insight to a market like this. I have searched the site and did not find a situation similar to this. Lastly, I apologize if this post is a bit fragmented. I have been doing market research all day and listening to Brandon Turner's book (that is why I am here) and I am a little burn out!

Chris