Midwest REI Start-up Strategy? Military STRs or Traditional MF?

[Joshua Nimmo]

Finally pulling the trigger on my first post!  

I have been listening to the podcasts and reading every book I can get my hands on, so I will admit that this post is partly to start the clock and give me some accountability as I move forward, but I am honestly also looking for some guidance as I look to start connecting with the right team.

Here is the short of it: I work part-time with a military unit which has a built-in network of regular travelers with a predetermined number of travel rates and days per year. I have been thinking about going the military crash pad direction since I will only need to get a few committals and then could even ABnB additional days. I know with any military dependency you take a risk, but this is also a state-funded mission, so not on the same annual review list that other active duty units face. Looking at the numbers, I would basically only need 3 people to commit in order to have positive cash flow without additional STR, which could really make it a good deal in the end. The thing to think about here is if I can balance the cost of the amenities when these travelers would be comparing accommodations to hotels, although most have said that having a place they could store gear and feel at home would make it more attractive. I could also do some small things like keeping the pantry stocked etc...

Alternatively, since we are talking about a large city, there are several colleges and hospitals in the city center where I have found multi-family opportunities from 2-5 units that would fit a more traditional model if I could get it for the right price (yes I know this is always the major hurdle! haha).  Prob the difference here is that my renter market would be much larger and easier to predict.

As I write this, I think a lot of this question comes from all the STR success I hear/read about and this market is especially good for that during elections as well, so I guess I am trying to figure out if that is a fad that I am too late on or if it is something I should seriously consider, especially since I kind of have a unique access to a steady stream of renters...I did talk to someone who isn't even downtown and he said leading up to elections he rents his basement unit for $300/mo and it was not even updated!

Appreciate any advice/insight for those that have traveled this road before!

Thanks!