How to check Demand for MTR

[Alex Ng]

Hi, I'm looking to buy a property for MTR (Victorville, CA). I did a bit of research and know how much properties rent for MTR-wise. I want to know a more concretely and hopefully numerically how much demand MTRs have in a certain market. I know I should look for hospitals/corporations and I have done that but does it fully guarantee that the MTR will be rented? This property would not cash flow as a LTR and the occupancy rates for STR is too low (40-50%) so MTR is the only viable option. I have strong hopes for this city as it continues to develop. I want to be able to minimize my risk as much as I can and make sure this property will cashflow as MTR. are there any tips to help in succeeding in MTR? How do I calculate the vacancies in MTR? How do I calculate the demand?

[Bonnie Low]

There is no AirDNA-like tool for MTRs currently. You have to cobble together your research from a variety of sources and then ultimately just make your decision. There are no guarantees ever in real estate. Start with Furnished Finder to see what demand and available units looks like in your City and where your city ranks amongst CA cities. They will also break down the unit demographics on their site - how many single rooms vs entire houses and the average monthly rate for both. Check to see if there are extended stay type hotels in your city. That's always an indicator of demand. Check Airbnb for 30+day stays in your area and see how many listings there are and how booked out they are. All of these are ways to determine demand in your market but I would also recommend you have a backup strategy. You said it won't cash flow as an LTR. Ideally, you have another strategy you can fall back on if it doesn't work out as an MTR. Some people do a hybrid STR/MTR model but you said STR is not viable. Ultimately you'll have to decide if you believe in the city enough to wait it out if your property won't cash flow. That's not something I would recommend, but you have to determine your own risk tolerance.