First Investment - MTR in Springfield, Illinois?

[Brian Lloyd Trieu-Mallari]

Hi everyone. I'm looking into getting my first investment property and considering buying a home in Springfield, IL and turning it into a MTR. The reason for this is because Springfield looks to be a low-cost entry point. It also has good demand for travel clinicians/nurses, and on Furnished Finder the data suggests that there is good demand but very little housing available to them. Seems like an opportunity to fill the gap in a cheaper market. My concern, however, is that I'm in California and don't have any personal connections in Springfield. I worry that because I don't have a network in Springfield and am brand new to REI, I may have a tough time.

My question is: is Springfield, IL a viable market to create MTRs? Should I consider pivoting to a different market where I have connections?

Thank you!

[Darius Wade]

First off congrats on working towards starting your investing journey. Being in an expensive market such as San Fran will require you to look out of state so others in your area would agree that this approach is right. However, in terms of MTR I have not personally done it but agree that the strategy is a viable option depending on the market. In terms of the location you are looking at it is up to your due diligence and your risk tolerance to determine if it is a good market. There are tons of traveling nurses out there and if your research validates this opening in the market then yes it is a market to consider. But regardless of whether that is the case the properties you look at must make sense and cash flow not to mention have multiple exit strategies. The goal is MTR but find locations in the market that could support STR or even LTR. This lowers your risk as you have multiple ways to make sure the property is occupied and the mortgage is paid for.

In terms of support in the area this can be challenging but definitely doable. Utilizing a place like bigger pockets or LinkedIn to find other investors in that area is essential. You need to look to network and build a rapport with people from there. This is because when looking to invest out of state, especially the first time it is essential to have some boots on the ground in that area. They can recommend contractors, agents and differentiate good and bad areas. You could either take that approach or my suggestion which would be to look for a partnership for the first deal. This will lower your cut but "50% of a good deal is better than 100% of no deal (or bad deal)". I hope this helps.