What cash on cash are you seeing for MTR?

[Brittany Stradling]

I'm curious what COC you all are seeing, particularly those who didn't get a mortgage with a 3% interest rate. I'm considering adding a medium term to my portfolio and at the very beginning of information stage. I plan on ready 30 day stay as well

[Bonnie Low]

I have never bought a property specifically intending to rent it out as an MTR - for me it's been a strategy that has developed over time - so I've always done my underwriting as an LTR and for that we set a minimum COC expectation of 12%. I believe this is a sound strategy because if it didn't work out as an MTR, I'd know I could still cash flow it as an LTR and sometimes you just don't know how well it will do as an MTR, especially if you're new. I'll go even further to say that I would not do my underwriting with the expectation of MTR revenue. If it makes money and meets my criteria as an LTR, the upside as an MTR is just gravy. Don't get me wrong, I really like MTRs and believe this space will continue to grow in the future but it can be hard to predict.