Small multi/mid term rental

[Brandon Jonker]

Personal opinion here, does anyone disagree?

Investing in a small multi-family property and turning it into mid-term rentals is the top dog strategy in small metros, like Grand Rapids, MI. Especially with the high prices and high interest rates nowadays. Here's why I think it’s awesome:

1. Steady/ Diverse Demand: Mid term rentals meet the needs of a variety of people. Some examples: students, medical professionals, insurance claims, folks waiting to buy their primary residence, and the list goes on. People always need a place to stay, and most of the smaller metros have a constant flow of mid term renters.
2. Affordable Entry: You don't need a fortune to get started in small metros, and lower property prices generally means better returns.
3. Less Competition: Mid term is on the rise but I have not seen the supply get even close to meeting the demand in my metro, Grand Rapids. Also, smaller metros mean fewer investors breathing down your neck, giving you a leg up in negotiations.
4. Cash Flow: You should be buying these to cashflow as a long term rental. And if that’s the case, as you convert the units to mid term, it should super charge your cashflow!
5. Flexibility: You can always revert back to long term, the tried and true, if mid term demand drops in your area. It’s your choice, it may be best to have 1/2 long term units and 1/2 mid term units in your small multi family property to mitigate risk. 

But remember, do your homework, know the local rules, and have a good plan. Real estate can be tricky and hyperlocal, so consider a local expert for guidance. Happy investing! 🏡💰

Feel free to reach out if you need help navigating the West Michigan market!