Should my MTR portfolio be deep or wide?

[Adrian Wooten]

I'm working on the rehab of my first MTR in Montgomery and it got me to thinking. If properties in small towns are already cheap,why don't I purchase in the towns with 2 or more hospitals and have a full portfolio of MTRs. Or should I concentrate on one market and have multiple MTRs there? 

[Eric Martin]

Congrats on your first mid term rental! Both strategies for expanding your MTR portfolio have pros and cons. Diversifying across towns with multiple hospitals offers risk mitigation and a wider range of potential renters, but managing properties in different locations can be logistically challenging. On the other hand, focusing on a single market allows you to become an expert in that area and streamline management, but you may face greater risks if the local market faces a downturn. Ultimately, your decision should be based on your personal preferences, risk tolerance, and how much time and effort you're willing to invest in managing your MTR properties. It may also help to ask yourself "How does each decision align with my overall investment goals?"

Hope this helps and good luck with your MTR expansion!

[Adrian Wooten]

Quote from @Eric Martin:

Congrats on your first mid term rental! Both strategies for expanding your MTR portfolio have pros and cons. Diversifying across towns with multiple hospitals offers risk mitigation and a wider range of potential renters, but managing properties in different locations can be logistically challenging. On the other hand, focusing on a single market allows you to become an expert in that area and streamline management, but you may face greater risks if the local market faces a downturn. Ultimately, your decision should be based on your personal preferences, risk tolerance, and how much time and effort you're willing to invest in managing your MTR properties. It may also help to ask yourself "How does each decision align with my overall investment goals?"

Hope this helps and good luck with your MTR expans

Thanks for your imput!

[John McKee]

Dominate the market your in first then expand.

[Bonnie Low]

I wouldn't limit your target guest to medical professionals only. You'd be surprised how many people are traveling to or relocating and need furnished housing for longer periods. Before you worry about expanding too much, get one solid performer under your belt. You'll learn so much once your property goes live and then you can execute your plan accordingly.

[Nicole Heasley Beitenman]

Jesse Vasquez highlighted the pros of having multiple properties in a single market. I'd build up a bit where you're comfortable and then move outward to mitigate risk. And have a plan B for every property you buy if, for some unforeseen reason, the MTR market crashes and burns.

[Brandon Vanderford]

Quote from @John McKee:

Dominate the market your in first then expand.

I agree with John. Investing close to home is almost always the best option when you are first getting started (one exception is if you live in a "million dollar city"). Expand later on, but find your footing in your community. 

Not all cities are the "hot" place to be, of course. But in my opinion, there is almost always a way to make money in real estate, regardless of your location. Being forced to think creatively can help you find your niche.

[Conner Olsen]

Quote from @Adrian Wooten:

I'm working on the rehab of my first MTR in Montgomery and it got me to thinking. If properties in small towns are already cheap,why don't I purchase in the towns with 2 or more hospitals and have a full portfolio of MTRs. Or should I concentrate on one market and have multiple MTRs there? 

Go deep, prove the concept, get a good team, find similar markets to expand.

[Lawrence Potts]

Quote from @Adrian Wooten:

I'm working on the rehab of my first MTR in Montgomery and it got me to thinking. If properties in small towns are already cheap,why don't I purchase in the towns with 2 or more hospitals and have a full portfolio of MTRs. Or should I concentrate on one market and have multiple MTRs there? 

I don’t think there’s a wrong answer. Many people do one or the other or both. I’d like to say don’t put your hypotheticals into “this or that” in opposition of each other but ask yourself “why not both? How can I do both?” And I think doing both gives the connotation of being spread too thin. Which can happen if you don’t have the systems and processes in place.

Both answers have similar requirements: a proven model or success. They need a system of operations in the MTR space (what kind of furniture, marketing strategy, inventory check, follow up process, lead funnels, etc). Without these, it doesn’t matter how wide or how deep you go, you won’t do very well no matter what. So wherever you decide to go, I think the bigger concern should be if you are operating at a very high level versus where should my next investment be.

Assuming that your business operations is successful and proven and can be replicated: I would encourage going the +2 hospital route. That’s one large funnel for leads. As others have mentioned before, traveling nurses is not your only target audience. Traveling med techs, ultra sound techs, physical therapists, lab technicians, nurse practitioners, floating respiratory therapists, to mention a few, all fit in this category of medical staffers. Law enforcement, families displaced by home damage (floods, hail, snow, fire), people needing somewhere to stay while they find their new home purchase, consultants, managers, all need MTRs. You can niche down if you want, but you can also accommodate for a general audience as well.

I would say just pick one and focus in that lane. And as you better your operations, it will take you to where it makes sense. Hope that helps!

[Nicole Heasley Beitenman]

Quote from @Brandon Vanderford:

Quote from @John McKee:

Dominate the market your in first then expand.

I agree with John. Investing close to home is almost always the best option when you are first getting started (one exception is if you live in a "million dollar city"). Expand later on, but find your footing in your community. 

Not all cities are the "hot" place to be, of course. But in my opinion, there is almost always a way to make money in real estate, regardless of your location. Being forced to think creatively can help you find your niche.

I couldn't agree more. I know David Greene is pushing the appreciation approach more, but there is absolutely nothing appealing to me about purchasing properties that cost 3x more than the ones in my backyard, not to mention the headaches that come with long-distance management. Kudos to those who are doing so and making money and enjoy it, but you also have to consider what you will and won't enjoy doing.