Out of State Investing in Travel Nurse Rental Multifam

[Quiana Berry]

As a newbie I am facing analysis paralysis on where to start my midterm investing journey. In NYC starting a midterm rental business is super expensive unless it's done upstate hence why Albany came on my radar. Also according to Furnished Finder its 5th in the state and there are 133k+ searches in the last 12 months and only 365 homes available. This seems like a lower competition market to start in, anyone have success they cna speka on? Also I saw a turnkey property selling for 459k and it is already on Furnished Finder. Wondering if that's a good deal. Any tips appreciated

[Samuel Diouf]

You can find lower priced homes that will do well here in Columbus, Ohio. Nationwide has the third largest children's hospital in the U.S. here in Columbus.

[Zeke Liston]

Quote from @Quiana Berry:

As a newbie I am facing analysis paralysis on where to start my midterm investing journey. In NYC starting a midterm rental business is super expensive unless it's done upstate hence why Albany came on my radar. Also according to Furnished Finder its 5th in the state and there are 133k+ searches in the last 12 months and only 365 homes available. This seems like a lower competition market to start in, anyone have success they cna speka on? Also I saw a turnkey property selling for 459k and it is already on Furnished Finder. Wondering if that's a good deal. Any tips appreciated

Hey Quiana, it's hard to tell if that's a good deal or not without reviewing the numbers and comps. I would try to run some comps on Zillow or Redfin. If you're considering out-of-state investing, I would consider the Columbus, Ohio, market. There are good opportunities for MTR and STR rentals here at a much more approachable price point. Good luck!

[Anthony Stephens]

I think the Albany market is not discussed enough. I have a few regular rental properties there and find it to be a pretty good rent to price ratio. Taxes are fairly high so that should be taken into consideration. I have no experience with midterm rental but would like to know more about it. Have you considered renting units without purchasing for your business?

[Zachary Deal]

I think Albany and a lot of the other markets within a couple hours of the city are often great LTR, STR, and MTR markets and are often overlooked. The properties tend to bring in good rents for their value and are of course not nearly as expensive as the city. @Anthony Stephens is right that the taxes are higher (in NJ as well) so that should be taken into consideration

[Erin Spradlin]

Quote from @Quiana Berry:

As a newbie I am facing analysis paralysis on where to start my midterm investing journey. In NYC starting a midterm rental business.

@Quiana Berry - I have a lot more success with MTRs on Airbnb and Zillow Rental Manager. Furnished Finder was more effective for me about 18 months ago, and has been less so since it became more popular. Also, there's a lot of confusion from the tenant side as far as who can book on Furnished Finder. So many people think that you have to be a nurse or a medical professional to be on Furnished Finder, but that's not true... However, that stereotype limits the tenant pool which limits your ability to fill your place. 

[Colleen F.]

@Quiana Berry   You need to look at the numbers and local legislation.  Your midterm rental may not be cash flowing well, if it is selling.    The health care traveler market has fallen off and more people are getting into it. Don't just go by searches, look at what is rented in the area you want to buy (what is on ff but Not available). Check a couple other ways.  You may want to look at what other midterm renters there are in your area. 

[Travis Timmons]

@Erin Spradlin it's funny that you mention that, we're all Airbnb and Zillow for the last 18 months as well. Airbnb tenants also pay a higher price. I'm considering just killing the furnished finder account due to the $149 annual fee. It's not much, but it's been a waste for the last year or two.

[Erin Spradlin]

Quote from @Travis Timmons:

@Erin Spradlin it's funny that you mention that, we're all Airbnb and Zillow for the last 18 months as well. Airbnb tenants also pay a higher price. I'm considering just killing the furnished finder account due to the $149 annual fee. It's not much, but it's been a waste for the last year or two.

 @Travis Timmons Yes, I actually was up for renewal and just let it expire for the same reason. It's not a lot of money, but after awhile, it begs the question: why am I paying for this? 

[Marco Padilla]

Quote from @Quiana Berry:

As a newbie I am facing analysis paralysis on where to start my midterm investing journey. In NYC starting a midterm rental business is super expensive unless it's done upstate hence why Albany came on my radar. Also according to Furnished Finder its 5th in the state and there are 133k+ searches in the last 12 months and only 365 homes available. This seems like a lower competition market to start in, anyone have success they cna speka on? Also I saw a turnkey property selling for 459k and it is already on Furnished Finder. Wondering if that's a good deal. Any tips appreciated

Hey Quiana you can consider:

1. Research the
   market: Start by identifying cities or regions known for having
   significant hospitals or healthcare facilities. You can use online
   resources, such as hospital directories or real estate websites, to
   gather information about the location of hospitals and the surrounding
   area.
2. Analyze the demand: Look into the demand for rental
   properties in those areas. You can research the occupancy rates,
   rental rates, and average length of stay for properties near hospitals.
   Online platforms like Furnished Finder can provide insights into the
   demand for furnished rentals.
3. Evaluate the competition:
   Assess the level of competition in the market. You can examine the
   number of available properties, search trends, and the ratio of demand
   to supply. Lower competition markets may present better opportunities
   for initial success.
4. Seek success stories: Reach out to
   fellow investors who have experience investing in similar markets.
   Online real estate forums, local investor networks, or social media
   groups can be great resources for finding success stories and
   experiences from investors who have achieved positive outcomes in lower
   competition markets.
5. Analyze the property: When
   evaluating an available property, you should conduct a thorough
   analysis. Consider factors such as the purchase price, condition of the
   property, rental income potential, expenses, and potential return on
   investment. It's important to review any existing rental listings, like
   the ones on Furnished Finder, AirBnb & VRBO and assess the property's performance and
   potential profitability.
6. Consult professionals: It may be
   beneficial to consult with real estate agents, property
   managers, or financial advisors who are familiar with the target market.
   They can provide local insights, advice on market conditions, rental
   regulations, and help analyze the investment potential.

Remember,
making informed investment decisions requires your careful analysis and due
diligence. And should consider your own financial goals, risk
tolerance, and conduct thorough research specific to the target market
before making any decisions. Good luck!

[James Carlson]

Quote from @Travis Timmons:

@Erin Spradlin it's funny that you mention that, we're all Airbnb and Zillow for the last 18 months as well. Airbnb tenants also pay a higher price. I'm considering just killing the furnished finder account due to the $149 annual fee. It's not much, but it's been a waste for the last year or two.

 Yes, this ^^^.

[Miguel Del Mazo]

The data you get from FurnishedFinder doesn't make it easy to analyze a prospective area for investment, and as far as I know, there isn't an equivalent AirDNA-type service that produces great data for MTR investors. With so many municipalities imposing stricter guidelines for STRs, we are seeing a lot of STR hosts converting to MTRs (which I would argue is trickier than it might first appear). This means more competition in many areas and poor data with which to make a decision on where to invest.

This can lead to that analysis paralysis that the OP was talking about.  One way to break through that barrier is MTR arbitrage.  If you are interested in an area, look into renting a LTR from a responsible landlord and, with their permission and clearly defined (in writing) roles and responisbilities, then sub-lease their unfurnished rental as an MTR once you furnish it and get it ready. This can allow you to learn an area at a much deeper level without the major investment of purchasing a property. MTR arbitrage (MTRbitrage?)  has drawbacks, of, course. You miss out on any appreciation and tax benefits, and a lot depends on the quality of who you rent from, but I don't know of any way to more cheaply enter into a new market and learn it.

[Mike Lambert]

Quote from @Miguel Del Mazo:

The data you get from FurnishedFinder doesn't make it easy to analyze a prospective area for investment, and as far as I know, there isn't an equivalent AirDNA-type service that produces great data for MTR investors. With so many municipalities imposing stricter guidelines for STRs, we are seeing a lot of STR hosts converting to MTRs (which I would argue is trickier than it might first appear). This means more competition in many areas and poor data with which to make a decision on where to invest.

This can lead to that analysis paralysis that the OP was talking about.  One way to break through that barrier is MTR arbitrage.  If you are interested in an area, look into renting a LTR from a responsible landlord and, with their permission and clearly defined (in writing) roles and responisbilities, then sub-lease their unfurnished rental as an MTR once you furnish it and get it ready. This can allow you to learn an area at a much deeper level without the major investment of purchasing a property. MTR arbitrage (MTRbitrage?)  has drawbacks, of, course. You miss out on any appreciation and tax benefits, and a lot depends on the quality of who you rent from, but I don't know of any way to more cheaply enter into a new market and learn it.

Sounds like a great idea but, by the time you’ve learned, the market could have changed, especially the supply and demand equilibrium. 

[Miguel Del Mazo]

Quote from @Mike Lambert:

Sounds like a great idea but, by the time you’ve learned, the market could have changed, especially the supply and demand equilibrium. 

That's true.  I don't suggest doing arbitrage for many years to figure out the market (and the ropes), but rather, one can start with a sub-lease and then relatively quickly choose to buy if the conditions are good while continuing to profit from the sub-leased property until lease end.  If the conditions are not good, then you've saved a lot of grief and money buying into the wrong area at the cost of a lower amount of grief and money through the sub-lease.

I 100% agree, though, that extended paralysis will render you subject to the whims of a changing market.  If the market goes up, you've lost out on all the wonderful benefits of owning real estate.  If it stays the same or goes down, then only being in a lease can actually be better than being stuck as an owner.

As an additonal caveat, I aim for smaller markets where there is a decent gap between what an unfurnished and furnished unit will rent for.

[Steven Luttman]

There are a number of business models what can work in Albany. Student rentals by the UAlbany campus is certainly doable, however may become more competitive with the upcoming closure of Saint Rose. Clients are reporting great success with mid term rentals catering to traveling health care professionals at Albany Med. Of course there is a demand for quality housing for all of the state workers seeking longer term leases. Either way, if you offer a good product at market rate you should be successful. 

-Steve

[Bonnie Low]

Quote from @Erin Spradlin:

Quote from @Quiana Berry:

As a newbie I am facing analysis paralysis on where to start my midterm investing journey. In NYC starting a midterm rental business.

@Quiana Berry - I have a lot more success with MTRs on Airbnb and Zillow Rental Manager. Furnished Finder was more effective for me about 18 months ago, and has been less so since it became more popular. Also, there's a lot of confusion from the tenant side as far as who can book on Furnished Finder. So many people think that you have to be a nurse or a medical professional to be on Furnished Finder, but that's not true... However, that stereotype limits the tenant pool which limits your ability to fill your place. 

 Erin, you've really hit on one of FF's fatal flaws IMO. They are still branding themselves as a furnished rental website for "travel nurses and other traveling professionals" but they give travel nursing top billing throughout their website. It IS confusing for travelers and unnecessarily limiting. They announced last summer that for the first time ever searches from non-medical personnel exceeded that of medical travelers and yet they still haven't really pivoted. They're not doing themselves or their hosts any favors. That said, 100% of my guests have come from FF and all have been in the medical professions but that's because our area uses travel medical professionals pretty heavily. I'd suggest the OP widen the aperture. While MTRs have historically been associated with travel nurses, the market really is much larger than that. It sounds like Albany has many things going for it so there may be many reasons someone would travel there. FF is just one source and good for establishing a baseline of sorts, but I agree with you that it's going to be beneficial to market on other sites, including the OTAs.

[Erin Spradlin]

Quote from @Bonnie Low:

Quote from @Erin Spradlin:

Quote from @Quiana Berry:

As a newbie I am facing analysis paralysis on where to start my midterm investing journey. In NYC starting a midterm rental business.

@Quiana Berry - I have a lot more success with MTRs on Airbnb and Zillow Rental Manager. Furnished Finder was more effective for me about 18 months ago, and has been less so since it became more popular. Also, there's a lot of confusion from the tenant side as far as who can book on Furnished Finder. So many people think that you have to be a nurse or a medical professional to be on Furnished Finder, but that's not true... However, that stereotype limits the tenant pool which limits your ability to fill your place. 

 Erin, you've really hit on one of FF's fatal flaws IMO. They are still branding themselves as a furnished rental website for "travel nurses and other traveling professionals" but they give travel nursing top billing throughout their website. It IS confusing for travelers and unnecessarily limiting. They announced last summer that for the first time ever searches from non-medical personnel exceeded that of medical travelers and yet they still haven't really pivoted. They're not doing themselves or their hosts any favors. That said, 100% of my guests have come from FF and all have been in the medical professions but that's because our area uses travel medical professionals pretty heavily. I'd suggest the OP widen the aperture. While MTRs have historically been associated with travel nurses, the market really is much larger than that. It sounds like Albany has many things going for it so there may be many reasons someone would travel there. FF is just one source and good for establishing a baseline of sorts, but I agree with you that it's going to be beneficial to market on other sites, including the OTAs.

 @Bonnie Low THIS. I feel like Furnished Finder could make some very basic changes that would help them and their landlord hosts a lot, but they don't do it. For this reason, I feel like they are falling behind a little bit. It's interesting that you have been getting 100% of your guests from them because that was true for me until about 18 months ago and now it's all Airbnb and Zillow. LOL. Wherever they come from, I don't care as long as they are responsible and pay the bills. 

[Bonnie Low]

Quote from @Erin Spradlin:

Quote from @Bonnie Low:

Quote from @Erin Spradlin:

Quote from @Quiana Berry:

As a newbie I am facing analysis paralysis on where to start my midterm investing journey. In NYC starting a midterm rental business.

@Quiana Berry - I have a lot more success with MTRs on Airbnb and Zillow Rental Manager. Furnished Finder was more effective for me about 18 months ago, and has been less so since it became more popular. Also, there's a lot of confusion from the tenant side as far as who can book on Furnished Finder. So many people think that you have to be a nurse or a medical professional to be on Furnished Finder, but that's not true... However, that stereotype limits the tenant pool which limits your ability to fill your place. 

 Erin, you've really hit on one of FF's fatal flaws IMO. They are still branding themselves as a furnished rental website for "travel nurses and other traveling professionals" but they give travel nursing top billing throughout their website. It IS confusing for travelers and unnecessarily limiting. They announced last summer that for the first time ever searches from non-medical personnel exceeded that of medical travelers and yet they still haven't really pivoted. They're not doing themselves or their hosts any favors. That said, 100% of my guests have come from FF and all have been in the medical professions but that's because our area uses travel medical professionals pretty heavily. I'd suggest the OP widen the aperture. While MTRs have historically been associated with travel nurses, the market really is much larger than that. It sounds like Albany has many things going for it so there may be many reasons someone would travel there. FF is just one source and good for establishing a baseline of sorts, but I agree with you that it's going to be beneficial to market on other sites, including the OTAs.

 @Bonnie Low THIS. I feel like Furnished Finder could make some very basic changes that would help them and their landlord hosts a lot, but they don't do it. For this reason, I feel like they are falling behind a little bit. It's interesting that you have been getting 100% of your guests from them because that was true for me until about 18 months ago and now it's all Airbnb and Zillow. LOL. Wherever they come from, I don't care as long as they are responsible and pay the bills. 

 I don't konw if you're on many social media sites, but even on the FF FB page it is littered with guests AND hosts claiming FF is a scam! It all comes down to people not getting traction. Either guests who get no response from hosts or hosts who don't know how to use it and wonder why no one is booking their place. I even had a woman argue with me extensively because she was convinced that I worked for FF and that is why I was claiming I've had such success with it. For the love of Pete I could not convince her otherwise so I just gave up. But seriously, they have all of the elements there and it's just maddening that they don't do a better job with it. It particularly irks me because a) they have people wanting to use their site and b) I don't trust Airbnb's guest-forward policies so I refuse to list my MTRs there. The market needs alternatives to the OTAs and they're already set up and established - if they would just make some basic improvements it would help everyone!  Ok, rant over ; )

[Erin Spradlin]

Quote from @Bonnie Low:

Quote from @Erin Spradlin:

Quote from @Bonnie Low:

Quote from @Erin Spradlin:

Quote from @Quiana Berry:

As a newbie I am facing analysis paralysis on where to start my midterm investing journey. In NYC starting a midterm rental business.

@Quiana Berry - I have a lot more success with MTRs on Airbnb and Zillow Rental Manager. Furnished Finder was more effective for me about 18 months ago, and has been less so since it became more popular. Also, there's a lot of confusion from the tenant side as far as who can book on Furnished Finder. So many people think that you have to be a nurse or a medical professional to be on Furnished Finder, but that's not true... However, that stereotype limits the tenant pool which limits your ability to fill your place. 

 Erin, you've really hit on one of FF's fatal flaws IMO. They are still branding themselves as a furnished rental website for "travel nurses and other traveling professionals" but they give travel nursing top billing throughout their website. It IS confusing for travelers and unnecessarily limiting. They announced last summer that for the first time ever searches from non-medical personnel exceeded that of medical travelers and yet they still haven't really pivoted. They're not doing themselves or their hosts any favors. That said, 100% of my guests have come from FF and all have been in the medical professions but that's because our area uses travel medical professionals pretty heavily. I'd suggest the OP widen the aperture. While MTRs have historically been associated with travel nurses, the market really is much larger than that. It sounds like Albany has many things going for it so there may be many reasons someone would travel there. FF is just one source and good for establishing a baseline of sorts, but I agree with you that it's going to be beneficial to market on other sites, including the OTAs.

 @Bonnie Low THIS. I feel like Furnished Finder could make some very basic changes that would help them and their landlord hosts a lot, but they don't do it. For this reason, I feel like they are falling behind a little bit. It's interesting that you have been getting 100% of your guests from them because that was true for me until about 18 months ago and now it's all Airbnb and Zillow. LOL. Wherever they come from, I don't care as long as they are responsible and pay the bills. 

 I don't konw if you're on many social media sites, but even on the FF FB page it is littered with guests AND hosts claiming FF is a scam! It all comes down to people not getting traction. Either guests who get no response from hosts or hosts who don't know how to use it and wonder why no one is booking their place. I even had a woman argue with me extensively because she was convinced that I worked for FF and that is why I was claiming I've had such success with it. For the love of Pete I could not convince her otherwise so I just gave up. But seriously, they have all of the elements there and it's just maddening that they don't do a better job with it. It particularly irks me because a) they have people wanting to use their site and b) I don't trust Airbnb's guest-forward policies so I refuse to list my MTRs there. The market needs alternatives to the OTAs and they're already set up and established - if they would just make some basic improvements it would help everyone!  Ok, rant over ; )

 @Bonnie Low Rant away. I have so many thoughts about Furnished Finder, and most of them have to do with the company needing some kind of re-organization. It's particularly ironic that we are saying this about them when you source all your clientele from them and I have written books singing their praises- and, yet, now both of us are on a popular, public midterm rental forum saying they do not do a good job, they are not helping their hosts, they are leaving money on the table. Wake up, Furnished Finder. 

[Imam Hussain]

I am an Albany-based agent and investor with over 18 years of experience in Long-Term Rentals (LTR). Recently, I converted one of my units to Short-Term Rentals (STR)/Medium-Term Rentals (MTR). I've been receiving bookings from Airbnb, but Furnishedfinder hasn't yielded any promising leads.

It appears that Furnishedfinder could be viable for those with one-bedroom units and low expenses, particularly for catering to travel nurses at Albany Med. My specific unit is located uptown near SUNY. With my current MTR/STR setup, I'm averaging $2300-2400. Conversely, the same two-bedroom, one-bath unit could fetch $1600-1700 under a traditional LTR arrangement without furnishing or utilities.

Considering the added expenses, the MTR/STR model doesn't seem worth it for me, given the marginal increase in revenue.

[Bonnie Low]

Quote from @Erin Spradlin:

Quote from @Bonnie Low:

Quote from @Erin Spradlin:

Quote from @Bonnie Low:

Quote from @Erin Spradlin:

Quote from @Quiana Berry:

As a newbie I am facing analysis paralysis on where to start my midterm investing journey. In NYC starting a midterm rental business.

@Quiana Berry - I have a lot more success with MTRs on Airbnb and Zillow Rental Manager. Furnished Finder was more effective for me about 18 months ago, and has been less so since it became more popular. Also, there's a lot of confusion from the tenant side as far as who can book on Furnished Finder. So many people think that you have to be a nurse or a medical professional to be on Furnished Finder, but that's not true... However, that stereotype limits the tenant pool which limits your ability to fill your place. 

 Erin, you've really hit on one of FF's fatal flaws IMO. They are still branding themselves as a furnished rental website for "travel nurses and other traveling professionals" but they give travel nursing top billing throughout their website. It IS confusing for travelers and unnecessarily limiting. They announced last summer that for the first time ever searches from non-medical personnel exceeded that of medical travelers and yet they still haven't really pivoted. They're not doing themselves or their hosts any favors. That said, 100% of my guests have come from FF and all have been in the medical professions but that's because our area uses travel medical professionals pretty heavily. I'd suggest the OP widen the aperture. While MTRs have historically been associated with travel nurses, the market really is much larger than that. It sounds like Albany has many things going for it so there may be many reasons someone would travel there. FF is just one source and good for establishing a baseline of sorts, but I agree with you that it's going to be beneficial to market on other sites, including the OTAs.

 @Bonnie Low THIS. I feel like Furnished Finder could make some very basic changes that would help them and their landlord hosts a lot, but they don't do it. For this reason, I feel like they are falling behind a little bit. It's interesting that you have been getting 100% of your guests from them because that was true for me until about 18 months ago and now it's all Airbnb and Zillow. LOL. Wherever they come from, I don't care as long as they are responsible and pay the bills. 

 I don't konw if you're on many social media sites, but even on the FF FB page it is littered with guests AND hosts claiming FF is a scam! It all comes down to people not getting traction. Either guests who get no response from hosts or hosts who don't know how to use it and wonder why no one is booking their place. I even had a woman argue with me extensively because she was convinced that I worked for FF and that is why I was claiming I've had such success with it. For the love of Pete I could not convince her otherwise so I just gave up. But seriously, they have all of the elements there and it's just maddening that they don't do a better job with it. It particularly irks me because a) they have people wanting to use their site and b) I don't trust Airbnb's guest-forward policies so I refuse to list my MTRs there. The market needs alternatives to the OTAs and they're already set up and established - if they would just make some basic improvements it would help everyone!  Ok, rant over ; )

 @Bonnie Low Rant away. I have so many thoughts about Furnished Finder, and most of them have to do with the company needing some kind of re-organization. It's particularly ironic that we are saying this about them when you source all your clientele from them and I have written books singing their praises- and, yet, now both of us are on a popular, public midterm rental forum saying they do not do a good job, they are not helping their hosts, they are leaving money on the table. Wake up, Furnished Finder. 

You make a great point. If you've got people who having nothing good to say about it and have never had a good experience, that's one thing. But when you have people who have figured it out and they're still saying it needs improvement, it's probably time to listen to your audience. I know they have lost a lot of business by raising their fees dramatically this year. If I wasn't getting any traction and my annual fee more than doubled I'd drop it, too. Yes, it is working for me. For now. But I also can see why other people are so frustrated with it both from the host and the guests' point of view. 

[Liam Maher]

Check out Rochester and Buffalo too, they're both top #10 cities by cash flow in the country at the moment 

[Zachary Deal]

Agreed with @Liam Maher - I'm seeing a lot of great cash flowing deals in upstate in NY currently! Definitely very hot markets

[Matthew Irish-Jones]

Quote from @Zachary Deal:

Agreed with @Liam Maher - I'm seeing a lot of great cash flowing deals in upstate in NY currently! Definitely very hot markets

 Inventory is light right now in Buffalo NY, but it has been a great cash flow market for years.  There has been an appreciation play as well.  

[Martin Grizzanti]

 I like and invest full-time in Rochester--If you know where to buy it can be very solid for cash flow and appreciation 

[Bernita Wallace]

Quote from @Liam Maher:

Check out Rochester and Buffalo too, they're both top #10 cities by cash flow in the country at the moment 

 Liam, What site is this that you are using here? I am sorry-I cant tell. ,