Newbie with zero direction in pricing rent for MTR

[Shi Esguerra]

Hey gang, I’m learning, reading, listening to podcasts, meetups, etc. Initially my draw to investment real estate was buy and holds to build a legacy for our children (one of our kiddos will need finances covered for him beyond my husband’s and my life. This leaves the two oldest to help manage his expenses). Buy/holds is still the dream. But in the mean time MTR still feels “safe” for this newbie.  My three year goal is to provide greater help financially for my husband with our expenses. Minimal backstory.  We grew our family through foster/adoption. Long story short mental health coverage for our kids is not cheap and often out of network; out of pocket. I am seeking property in OH. I’ve done calculations for analysis and checked into rental potential on two locations. Looking at a place in Columbus in the Victorian Village.  It’s a 1/1 under 700 sqft and turnkey.  For potential profit I’d have to rent $2500+ monthly.  My target is medical/business professionals.  The surrounding homes are maybe $1800/mo. Anything in the $3000 range are 2/1 homes. Not townhomes or condos.  There’s concern that any rent below $2500 will result in negative $2-300 a month. So I’m honestly not sure about goin in on a property only to lose money. I know location is key. Safety is important to me. Any travel nurse is a brother or sister in my field, so my plan is to make sure their housing is everything they could imagine in comfort and necessity be met.  Thanks for your time and input. 

[Najma Osman]

Hi @Shi Esguerra, 

I agree location is key for a STR/MTR. Since you are a first time out of state investor with little STR experience, I reccomend running your numbers more conservatively. As a backup, try to find deals where the numbers could also work as a LTR. I invest locally in Columbus so free to shoot me anything you're looking at, I'd be happy to provide an opinion!