Ask Me Anything Mid-Term edition.

[Matthew Masoud]

This forum has done so much for me and I felt a bit guilty this afternoon for not giving back. 

Scaled to 48 Mid-Term Rentals in 2 years OH, hired a property manager and maintenance person. Quitting my job next week and moving to North Carolina to grow a portfolio there.

So Ask me anything, Mid-Term Rentals edition.

[Matthew Masoud]

Quote from @Brian Malavsky:

There are a couple great podcast episodes on asset protection, the main show ep. 595, and BP Rookie ep. 105 & 106, that give a ton of great information on what LLC's can and can't do for you.

For me, I personally use an umbrella policy for my protection but did setup an LLC immediately more so for financing later on down the road. I believe you need to show consistent income for two years before you can get financing through the business. I am working towards investing full-time and leaving my W-2 behind. So, I wanted to start the 2yr clock as soon as possible. I also keep my personal funds and business funds completely seperate. The corporate veil of an LLC can get pierced very easily if funds aren't managed correctly. It may seem complicated but it really isn't if you create a business bank account and credit card. You always can add a cash infusion into your business and repay yourself of that loan. I've been told that when you start pulling out business income (money exceeding the "personal loan" you gave to your business) for personal use is when things get dicey.

I am by no means an expert, but more so relaying advice that I have recieved. Hope this helps @Charles Lambert

Cheers! 

 You hit two key points here.

1. Having an LLC alone does not protect you from liability, mixing funds is the most common way to open yourself up to liability.

2. Financing in an LLC is difficult because you have to show income. A common way around this is to personally guarantee the loan. This is more common in commercial financing than it is in residential financing.

[Charles Lambert]

Quote from @Brian Malavsky:

There are a couple great podcast episodes on asset protection, the main show ep. 595, and BP Rookie ep. 105 & 106, that give a ton of great information on what LLC's can and can't do for you.

For me, I personally use an umbrella policy for my protection but did setup an LLC immediately more so for financing later on down the road. I believe you need to show consistent income for two years before you can get financing through the business. I am working towards investing full-time and leaving my W-2 behind. So, I wanted to start the 2yr clock as soon as possible. I also keep my personal funds and business funds completely seperate. The corporate veil of an LLC can get pierced very easily if funds aren't managed correctly. It may seem complicated but it really isn't if you create a business bank account and credit card. You always can add a cash infusion into your business and repay yourself of that loan. I've been told that when you start pulling out business income (money exceeding the "personal loan" you gave to your business) for personal use is when things get dicey.

I am by no means an expert, but more so relaying advice that I have recieved. Hope this helps @Charles Lambert

Cheers! 

 Great, info, thanks! Unfortunately, it seems that older podcast episodes are not available, if not previously downloaded. I started listening to the more recent BP podcasts recently. I scrolled down and it only goes as far as episode 633 from about a year ago (July 9, 2022). Hopefully there's another way to listen to older podcasts, or at least those two episodes.

The umbrella policy sounds good. I'd also want to incorporate right from the start, so the business is separate from my personal accounts at all times. And, for protection. I think that's what you meant with the corporate veil being pierced.

Good idea to loan the money to the corporation, and then repay it. That way I can transfer the money from my personal account to the business account and keep everything legit. I should get an accountant before I do that, just to be sure I'm setting up everything correctly.

Two years isn't that bad to wait before applying for a loan in the business name. I'd have the rental income and all expenses shown on my financial statements anyways, for those two years. And I might need about that much time to get comfortable with managing a small multi-unit building. 

I was just listening to one of Robert Kiyosaki's presentations and he mentioned that for businesses, in lieu of a credit check like is done for consumers, for businesses, you provide your financial statements (and probably the last two years of tax returns to make it more official).

[Charles Lambert]

Quote from @Matthew Masoud:

Quote from @Brian Malavsky:

There are a couple great podcast episodes on asset protection, the main show ep. 595, and BP Rookie ep. 105 & 106, that give a ton of great information on what LLC's can and can't do for you.

For me, I personally use an umbrella policy for my protection but did setup an LLC immediately more so for financing later on down the road. I believe you need to show consistent income for two years before you can get financing through the business. I am working towards investing full-time and leaving my W-2 behind. So, I wanted to start the 2yr clock as soon as possible. I also keep my personal funds and business funds completely seperate. The corporate veil of an LLC can get pierced very easily if funds aren't managed correctly. It may seem complicated but it really isn't if you create a business bank account and credit card. You always can add a cash infusion into your business and repay yourself of that loan. I've been told that when you start pulling out business income (money exceeding the "personal loan" you gave to your business) for personal use is when things get dicey.

I am by no means an expert, but more so relaying advice that I have recieved. Hope this helps @Charles Lambert

Cheers! 

 You hit two key points here.

1. Having an LLC alone does not protect you from liability, mixing funds is the most common way to open yourself up to liability.

2. Financing in an LLC is difficult because you have to show income. A common way around this is to personally guarantee the loan. This is more common in commercial financing than it is in residential financing.

 I guess those are the pros and cons of incorporating. Mixing personal and business money sounds like a bad idea, I wasn't going to, but now that I know mixing funds can open me up to liability, that's another good reason to incorporate and keep funds separate. I should incorporate right away (or when I'm getting close to buying my first building), for a few reasons:
- liability protection
- establish the business (and its creditworthiness)
- looks professional, as it should be if I'm going to own a quadplex, and then maybe more buildings later (presumably all buildings can be under the same corporate name)

As for financing, hopefully by the time I need to apply for it, I will have established a good credit reputation and have solid financial statement to qualify for financing or even a business credit card. For my first purchase, I want to buy with cash and be debt free, then I'll see about borrowing to buy another building. I'd rather not personally guarantee anything, but I've heard of that being done.

[Matthew Masoud]

Quote from @Charles Lambert:

Quote from @Matthew Masoud:

Quote from @Brian Malavsky:

There are a couple great podcast episodes on asset protection, the main show ep. 595, and BP Rookie ep. 105 & 106, that give a ton of great information on what LLC's can and can't do for you.

For me, I personally use an umbrella policy for my protection but did setup an LLC immediately more so for financing later on down the road. I believe you need to show consistent income for two years before you can get financing through the business. I am working towards investing full-time and leaving my W-2 behind. So, I wanted to start the 2yr clock as soon as possible. I also keep my personal funds and business funds completely seperate. The corporate veil of an LLC can get pierced very easily if funds aren't managed correctly. It may seem complicated but it really isn't if you create a business bank account and credit card. You always can add a cash infusion into your business and repay yourself of that loan. I've been told that when you start pulling out business income (money exceeding the "personal loan" you gave to your business) for personal use is when things get dicey.

I am by no means an expert, but more so relaying advice that I have recieved. Hope this helps @Charles Lambert

Cheers! 

 You hit two key points here.

1. Having an LLC alone does not protect you from liability, mixing funds is the most common way to open yourself up to liability.

2. Financing in an LLC is difficult because you have to show income. A common way around this is to personally guarantee the loan. This is more common in commercial financing than it is in residential financing.

 I guess those are the pros and cons of incorporating. Mixing personal and business money sounds like a bad idea, I wasn't going to, but now that I know mixing funds can open me up to liability, that's another good reason to incorporate and keep funds separate. I should incorporate right away (or when I'm getting close to buying my first building), for a few reasons:
- liability protection
- establish the business (and its creditworthiness)
- looks professional, as it should be if I'm going to own a quadplex, and then maybe more buildings later (presumably all buildings can be under the same corporate name)

As for financing, hopefully by the time I need to apply for it, I will have established a good credit reputation and have solid financial statement to qualify for financing or even a business credit card. For my first purchase, I want to buy with cash and be debt free, then I'll see about borrowing to buy another building. I'd rather not personally guarantee anything, but I've heard of that being done.

You will want to consider an LLC over incorporating. It'll take an attorney 15 minutes (and probably $200) to tell you exactly what you need.

Money Well spent.

[Mara Sargent]

Quote from @Matthew Masoud:

This forum has done so much for me and I felt a bit guilty this afternoon for not giving back. 

Scaled to 48 Mid-Term Rentals in 2 years OH, hired a property manager and maintenance person. Quitting my job next week and moving to North Carolina to grow a portfolio there.

So Ask me anything, Mid-Term Rentals edition.

Congrats Matthew!  I have a 4 plex that I have a property management company mange 3 of the units and I live in the 4th unit.  I am moving out of my 1 bedroom apartment and I originally planned on long term renting it furnished.  Now, Im thinking mid-term rental as it is near town and a hospital. How much more can I charge for MTR vs Long term?  Is there a general rule of thumb percentage? 

[Bonnie Low]

That's a lot of scaling in 2 years - congratulations! Are you doing the rental arbitrage method? Between the 3 cities you mentioned: Cincinnati, Dayton and Columbus which do you see performing best for MTRs and who are your target guests?

[Adrian Tjakra]

Is there any property management company specializing in Mid Term rental you would recommend in the Ohio area?

[Charles Lambert]

Quote from @Mara Sargent:

Quote from @Matthew Masoud:

This forum has done so much for me and I felt a bit guilty this afternoon for not giving back. 

Scaled to 48 Mid-Term Rentals in 2 years OH, hired a property manager and maintenance person. Quitting my job next week and moving to North Carolina to grow a portfolio there.

So Ask me anything, Mid-Term Rentals edition.

Congrats Matthew!  I have a 4 plex that I have a property management company mange 3 of the units and I live in the 4th unit.  I am moving out of my 1 bedroom apartment and I originally planned on long term renting it furnished.  Now, Im thinking mid-term rental as it is near town and a hospital. How much more can I charge for MTR vs Long term?  Is there a general rule of thumb percentage? 

 That's awesome! It sounds exactly like what I'm planning to do! Nice to know there are other people doing this, though I am hoping to have a two bedroom apartment for myself, so I can have one room for a home office. I am also intrigued in doing a furnished medium term rental in one of the units, and if it goes well, maybe do all of the units (except the one I'm in) like that.

[Matthew Masoud]

Quote from @Bonnie Low:

That's a lot of scaling in 2 years - congratulations! Are you doing the rental arbitrage method? Between the 3 cities you mentioned: Cincinnati, Dayton and Columbus which do you see performing best for MTRs and who are your target guests?

 I don't do rental arbitrage. It's a good side income but it's a job not building wealth. Can be a great way to get started if you have absolutely no funds.

Columbus has the best metrics for mid-term rentals but the properties there do come at a premium compared to Dayton and even Cincinnati.

[Matthew Masoud]

Quote from @Adrian Tjakra:

Is there any property management company specializing in Mid Term rental you would recommend in the Ohio area?

 I was not able to find one. It was either long-term property management or short-term property management so I actually started my own. 

We almost exclusively manage our own property but are not opposed to taking other properties and plugging them into our operations.

[Matthew Masoud]

Quote from @Charles Lambert:

Quote from @Mara Sargent:

Quote from @Matthew Masoud:

This forum has done so much for me and I felt a bit guilty this afternoon for not giving back. 

Scaled to 48 Mid-Term Rentals in 2 years OH, hired a property manager and maintenance person. Quitting my job next week and moving to North Carolina to grow a portfolio there.

So Ask me anything, Mid-Term Rentals edition.

Congrats Matthew!  I have a 4 plex that I have a property management company mange 3 of the units and I live in the 4th unit.  I am moving out of my 1 bedroom apartment and I originally planned on long term renting it furnished.  Now, Im thinking mid-term rental as it is near town and a hospital. How much more can I charge for MTR vs Long term?  Is there a general rule of thumb percentage? 

 That's awesome! It sounds exactly like what I'm planning to do! Nice to know there are other people doing this, though I am hoping to have a two bedroom apartment for myself, so I can have one room for a home office. I am also intrigued in doing a furnished medium term rental in one of the units, and if it goes well, maybe do all of the units (except the one I'm in) like that.

 This is pretty much exactly what I did. I had a triplex back in 2020 that had a tenant leaving. I thought why not give this Mid-Term rental a chance? Worst case scenario I donate the furniture to the church and I'm back where I started.

The reservations came in fast and hard. Market rent for that apartment was $700, I was renting at $1,400 with near 100% occupancy. 

[Mara Sargent]

which are your favorite websites to list your mid-term rentals on?

[Matthew Masoud]

Quote from @Mara Sargent:

which are your favorite websites to list your mid-term rentals on?

 Furnish Finder brings in quite a bit but it's a manual reservation so more work is involved (lease, deposit ect).

I like airbnb because they handle the payment side of things. Their strong review system has helped me say no to a lot of tenants. Plus it comes with insurance. Their fees are pretty hefty though.

Then I get surprise bookings from other platforms like booking.com, Expedia, and google travel. I put my units everywhere to make sure they stay booked.

[Charles Lambert]

Quote from @Matthew Masoud:

Quote from @Charles Lambert:

Quote from @Mara Sargent:

Quote from @Matthew Masoud:

This forum has done so much for me and I felt a bit guilty this afternoon for not giving back. 

Scaled to 48 Mid-Term Rentals in 2 years OH, hired a property manager and maintenance person. Quitting my job next week and moving to North Carolina to grow a portfolio there.

So Ask me anything, Mid-Term Rentals edition.

Congrats Matthew!  I have a 4 plex that I have a property management company mange 3 of the units and I live in the 4th unit.  I am moving out of my 1 bedroom apartment and I originally planned on long term renting it furnished.  Now, Im thinking mid-term rental as it is near town and a hospital. How much more can I charge for MTR vs Long term?  Is there a general rule of thumb percentage? 

 That's awesome! It sounds exactly like what I'm planning to do! Nice to know there are other people doing this, though I am hoping to have a two bedroom apartment for myself, so I can have one room for a home office. I am also intrigued in doing a furnished medium term rental in one of the units, and if it goes well, maybe do all of the units (except the one I'm in) like that.

 This is pretty much exactly what I did. I had a triplex back in 2020 that had a tenant leaving. I thought why not give this Mid-Term rental a chance? Worst case scenario I donate the furniture to the church and I'm back where I started.

The reservations came in fast and hard. Market rent for that apartment was $700, I was renting at $1,400 with near 100% occupancy. 

 This is what I love to hear! I first got turned on to the idea of medium term rentals after watching "Income Property" on HGTV about a decade ago. It almost seemed too good to be true, but there will always be people in need of a furnished place to rent for a few months.

For those who have medium term rentals, what's an average monthly rent, double? Sometimes less or sometimes more than double what it would rent for as an unfurnished long term rental? And what are better areas for this? I'm thinking mid size to larger cities with a college, large hospital, sports teams or some kind of seasonal industry.

I find this attractive, as some of the cities I've been thinking of moving to, and house hacking in a quadplex, are affordable, which is great for buying. But, that also means lower monthly rents, so being able to charge double the rent for a furnished, medium term rental sounds good. Even if there is some vacancy throughout the year, I think I'd still come out ahead. I've got enough furniture to furnish two apartments right now anyways.

[Matthew Masoud]

Quote from @Charles Lambert:

Quote from @Matthew Masoud:

Quote from @Charles Lambert:

Quote from @Mara Sargent:

Quote from @Matthew Masoud:

This forum has done so much for me and I felt a bit guilty this afternoon for not giving back. 

Scaled to 48 Mid-Term Rentals in 2 years OH, hired a property manager and maintenance person. Quitting my job next week and moving to North Carolina to grow a portfolio there.

So Ask me anything, Mid-Term Rentals edition.

Congrats Matthew!  I have a 4 plex that I have a property management company mange 3 of the units and I live in the 4th unit.  I am moving out of my 1 bedroom apartment and I originally planned on long term renting it furnished.  Now, Im thinking mid-term rental as it is near town and a hospital. How much more can I charge for MTR vs Long term?  Is there a general rule of thumb percentage? 

 That's awesome! It sounds exactly like what I'm planning to do! Nice to know there are other people doing this, though I am hoping to have a two bedroom apartment for myself, so I can have one room for a home office. I am also intrigued in doing a furnished medium term rental in one of the units, and if it goes well, maybe do all of the units (except the one I'm in) like that.

 This is pretty much exactly what I did. I had a triplex back in 2020 that had a tenant leaving. I thought why not give this Mid-Term rental a chance? Worst case scenario I donate the furniture to the church and I'm back where I started.

The reservations came in fast and hard. Market rent for that apartment was $700, I was renting at $1,400 with near 100% occupancy. 

 This is what I love to hear! I first got turned on to the idea of medium term rentals after watching "Income Property" on HGTV about a decade ago. It almost seemed too good to be true, but there will always be people in need of a furnished place to rent for a few months.

For those who have medium term rentals, what's an average monthly rent, double? Sometimes less or sometimes more than double what it would rent for as an unfurnished long term rental? And what are better areas for this? I'm thinking mid size to larger cities with a college, large hospital, sports teams or some kind of seasonal industry.

I find this attractive, as some of the cities I've been thinking of moving to, and house hacking in a quadplex, are affordable, which is great for buying. But, that also means lower monthly rents, so being able to charge double the rent for a furnished, medium term rental sounds good. Even if there is some vacancy throughout the year, I think I'd still come out ahead. I've got enough furniture to furnish two apartments right now anyways.

 Double the monthly rent is a good rule of thumb although some markets are more or less depending on demand.

Best areas are exactly what you said mid/large cities with hospitals, businesses, schools, etc.

Yeah I'd definitely furnish that second unit and give it a shot. I always like to think worst case scenario, it makes me less afraid to make big moves. Worse case scenario you sell the furniture and rent out that second unit as a regular rental. (make sure the numbers work long-term as well)

[V.G Jason]

How leveraged are you?

Can you withstand a 4 to 6 month period of no rent for 25% of your properties and/or large($15,000+) capex repairs for half your properties if a major weather event came about in the area?

[Charles Lambert]

Quote from @Matthew Masoud:

Quote from @Charles Lambert:

Quote from @Matthew Masoud:

Quote from @Charles Lambert:

Quote from @Mara Sargent:

Quote from @Matthew Masoud:

This forum has done so much for me and I felt a bit guilty this afternoon for not giving back. 

Scaled to 48 Mid-Term Rentals in 2 years OH, hired a property manager and maintenance person. Quitting my job next week and moving to North Carolina to grow a portfolio there.

So Ask me anything, Mid-Term Rentals edition.

Congrats Matthew!  I have a 4 plex that I have a property management company mange 3 of the units and I live in the 4th unit.  I am moving out of my 1 bedroom apartment and I originally planned on long term renting it furnished.  Now, Im thinking mid-term rental as it is near town and a hospital. How much more can I charge for MTR vs Long term?  Is there a general rule of thumb percentage? 

 That's awesome! It sounds exactly like what I'm planning to do! Nice to know there are other people doing this, though I am hoping to have a two bedroom apartment for myself, so I can have one room for a home office. I am also intrigued in doing a furnished medium term rental in one of the units, and if it goes well, maybe do all of the units (except the one I'm in) like that.

 This is pretty much exactly what I did. I had a triplex back in 2020 that had a tenant leaving. I thought why not give this Mid-Term rental a chance? Worst case scenario I donate the furniture to the church and I'm back where I started.

The reservations came in fast and hard. Market rent for that apartment was $700, I was renting at $1,400 with near 100% occupancy. 

 This is what I love to hear! I first got turned on to the idea of medium term rentals after watching "Income Property" on HGTV about a decade ago. It almost seemed too good to be true, but there will always be people in need of a furnished place to rent for a few months.

For those who have medium term rentals, what's an average monthly rent, double? Sometimes less or sometimes more than double what it would rent for as an unfurnished long term rental? And what are better areas for this? I'm thinking mid size to larger cities with a college, large hospital, sports teams or some kind of seasonal industry.

I find this attractive, as some of the cities I've been thinking of moving to, and house hacking in a quadplex, are affordable, which is great for buying. But, that also means lower monthly rents, so being able to charge double the rent for a furnished, medium term rental sounds good. Even if there is some vacancy throughout the year, I think I'd still come out ahead. I've got enough furniture to furnish two apartments right now anyways.

 Double the monthly rent is a good rule of thumb although some markets are more or less depending on demand.

Best areas are exactly what you said mid/large cities with hospitals, businesses, schools, etc.

Yeah I'd definitely furnish that second unit and give it a shot. I always like to think worst case scenario, it makes me less afraid to make big moves. Worse case scenario you sell the furniture and rent out that second unit as a regular rental. (make sure the numbers work long-term as well)

 Sounds good! Even with some vacancy, I think the higher rents would make up for it. Making roughly double would be great, even if it is a bit more work. Another benefit I see is if you get a tenant you really don't like, at least you know they'll be gone in a few months anyways.

[Charles Lambert]

Quote from @V.G Jason:

How leveraged are you?

Can you withstand a 4 to 6 month period of no rent for 25% of your properties and/or large($15,000+) capex repairs for half your properties if a major weather event came about in the area?

I'd definitely have to make sure the numbers work and that I have a good contingency fund. It's one thing to worry about being able to do maintenance and repairs on my own personal residence, but a whole other thing when I'll be responsible for maintaining the residences of several other people. That's actually one of the things that worries me, but I know if done right, it should be fine, there are many successful real estate investors. That's why I'm not rushing into this, much as I want to start building up my investments.

Vacancies of four to six months is a bit longer than what I thought, but good to use those numbers. If it turns out to be a lower vacancy rate, that's a bonus. As nice as it would be to have it continuously rented, even if it was vacant for six months, if I charged double for the other half of the year it was rented, I'd be even with the rental income I'd have collected if someone had signed a one year lease.

Capital expenditure repairs are something that makes me a bit nervous too, especially since many of these quadplexes seem to be built between 1920 to 1960, give or take. Maybe I should look at a new construction duplex instead? Though that might rent better as a long term rental rather than medium term. I also like the idea of me just having an apartment, so it would be easy to go away for extended periods of time and it wouldn't be as obvious as with a house.

[Matthew Masoud]

Quote from @V.G Jason:

How leveraged are you?

Can you withstand a 4 to 6 month period of no rent for 25% of your properties and/or large($15,000+) capex repairs for half your properties if a major weather event came about in the area?

Very good questions.

Most properties have 50%-60% equity. We are refinancing only at 60%-65% to prepare for a potential increase in cap rates that will directly hurt property values.

Our portfolio is spread out over 6 properties. They all share a bank that can float any property for over 6 months (This is not an operating account, each property has its own operating account)

. Think of it as an umbrella policy over our actual umbrella policy over our regular insurance for each property.

We use this account for CapEx repairs and then fill it up with the following month's cashflow

[V.G Jason]

Quote from @Charles Lambert:

Quote from @V.G Jason:

How leveraged are you?

Can you withstand a 4 to 6 month period of no rent for 25% of your properties and/or large($15,000+) capex repairs for half your properties if a major weather event came about in the area?

I'd definitely have to make sure the numbers work and that I have a good contingency fund. It's one thing to worry about being able to do maintenance and repairs on my own personal residence, but a whole other thing when I'll be responsible for maintaining the residences of several other people. That's actually one of the things that worries me, but I know if done right, it should be fine, there are many successful real estate investors. That's why I'm not rushing into this, much as I want to start building up my investments.

Vacancies of four to six months is a bit longer than what I thought, but good to use those numbers. If it turns out to be a lower vacancy rate, that's a bonus. As nice as it would be to have it continuously rented, even if it was vacant for six months, if I charged double for the other half of the year it was rented, I'd be even with the rental income I'd have collected if someone had signed a one year lease.

Capital expenditure repairs are something that makes me a bit nervous too, especially since many of these quadplexes seem to be built between 1920 to 1960, give or take. Maybe I should look at a new construction duplex instead? Though that might rent better as a long term rental rather than medium term. I also like the idea of me just having an apartment, so it would be easy to go away for extended periods of time and it wouldn't be as obvious as with a house.

 That's the art of hedging.

Even if you buy full turnkey, go put 75% of the full turnkey stuff as set reserves for capex. Set aside a year worth of no vacancy, set aside 4-6 months of time to get leased, set aside a month or two of funds for small repairs. If you're wrong, that's a great problem to have. 

[Charles Lambert]

Quote from @V.G Jason:

Quote from @Charles Lambert:

Quote from @V.G Jason:

How leveraged are you?

Can you withstand a 4 to 6 month period of no rent for 25% of your properties and/or large($15,000+) capex repairs for half your properties if a major weather event came about in the area?

I'd definitely have to make sure the numbers work and that I have a good contingency fund. It's one thing to worry about being able to do maintenance and repairs on my own personal residence, but a whole other thing when I'll be responsible for maintaining the residences of several other people. That's actually one of the things that worries me, but I know if done right, it should be fine, there are many successful real estate investors. That's why I'm not rushing into this, much as I want to start building up my investments.

Vacancies of four to six months is a bit longer than what I thought, but good to use those numbers. If it turns out to be a lower vacancy rate, that's a bonus. As nice as it would be to have it continuously rented, even if it was vacant for six months, if I charged double for the other half of the year it was rented, I'd be even with the rental income I'd have collected if someone had signed a one year lease.

Capital expenditure repairs are something that makes me a bit nervous too, especially since many of these quadplexes seem to be built between 1920 to 1960, give or take. Maybe I should look at a new construction duplex instead? Though that might rent better as a long term rental rather than medium term. I also like the idea of me just having an apartment, so it would be easy to go away for extended periods of time and it wouldn't be as obvious as with a house.

 That's the art of hedging.

Even if you buy full turnkey, go put 75% of the full turnkey stuff as set reserves for capex. Set aside a year worth of no vacancy, set aside 4-6 months of time to get leased, set aside a month or two of funds for small repairs. If you're wrong, that's a great problem to have. 

I'm starting to see the benefit in full turnkey, especially new construction turnkey, though most are SFH and duplexes, not multi-unit buildings. But, better to think through all of this now and ask questions rather than just jump into something based on intuition or just one perspective. I probably wouldn't sleep well if I didn't have a sizeable contingency fund to cover costs during extended length vacancies or major repairs, or even minor repairs.

From a risk aversion perspective, I think a new construction duplex in the suburbs would be a great investment. It's new, so likely little to no maintenance at first, and probably 10-15 years before more expensive things like the roof, etc. But, that wouldn't allow for a furnished medium term rental, unless I could put a basement suite in each of the side-by-side duplexes, I'd end up with a quadplex in the end, just more money upfront, which is what I was hoping to avoid.

[Yiwei Cheng]

Quote from @Adrian Tjakra:

Is there any property management company specializing in Mid Term rental you would recommend in the Ohio area?

 Hi Adam, I specialize in short term and mid term rental in Cincinnati, OH.  We own properties ourselves and manage for others.  Here's a link to our portfolio - www.pieceofhomestays.com

management only - www.pinkcashcow.com 

[Maurice J Gibson]

Hello Matthew,

I am in the state of Georgia and I have a potential opportunity to lease and recently renovated SF home and then sublease to traveling clinicians.  What analysis tools should I use? I initially used the rental analysis tool and kept the expenses with the landlord.  My offer would be at greater than market value with an increased deposit amount to make it more attractive.  What is your advise?

[Maurice J Gibson]

The offer being the lease amount above market value.

[Matthew Masoud]

Quote from @Maurice J Gibson:

Hello Matthew,

I am in the state of Georgia and I have a potential opportunity to lease and recently renovated SF home and then sublease to traveling clinicians.  What analysis tools should I use? I initially used the rental analysis tool and kept the expenses with the landlord.  My offer would be at greater than market value with an increased deposit amount to make it more attractive.  What is your advise?

 Check on furnish finder for the going rate for that unit size/amenities. Estimate a 90% occupancy rate and ensure you're still making money on that arbitrage.