Anyone do STRs exclusively to non-vacationing people?

[Paul Sandhu]

There are a few people on here that rent to traveling nurses, but it seems like I'm the only one that has working people as primary STR tenants. Anyone else rent to working people?

[Don Konipol]

@Paul Sandhu

Hi Paul

I always enjoy your post and your dead pan humor!

we foreclosed a number of years ago on a 10 unit property outside of Lake Jackson Texas which was exclusively rented on a short term basis to contract refinery workers. We had lent on the property and when the layoffs hit the oil business the borrower had vacancies and was unable to pay us. We did a “friendly” foreclosure and hired the borrower to manage the property for us, giving him an option to buy back the property ( at a healthy profit to us). The market improved over the next 18 months, we received a nice monthly cash flow, and he was able to obtain financing and buy the property back. About a year later he came to us for financing of a neighboring small apartment bldg he was able to purchase at a very low price and fill up immediately with tenant overflow from his property. We entered into a shared equity arrangement with him, and once more allowed him to buy us out within a couple of years.

I actually think this is a good market niche, but for us only with a motivated and quality manager, who needs a significant equity stake to ensure his max,um interest in the operation.

This deal nowhere approaches the ROI you are able to obtain by your purchase of the properties at so low a price. You've created an excellent business model.