What makes a good mid term rental market?

[Bruce Tieu]

Hi everyone,

I am on the hunt for my second house hack. I've been doing some research on different rental strategies. It seems in order of increasing profitability:

LTR < MTR < STR

Given that I'm based in the Denver metro area, unless I'm occupying the property as my primary residence, STR is out the question, as Denver has cracked down on the short tern rental laws. Long term rentals are tough to cash flow unless I implement a co-living / rent-by-the-room strategy, which I've done before, but I'd prefer to not do again. This leaves me to consider mid terms rentals as a way to generate above average cash flow while having a reasonable amount of management. 

However, these are the questions I have:

- What makes a good mid term rental market?

- What are those submarkets in the Denver metro area?

- How would one run the numbers on a mid term rental when it comes to startup costs, rental rates, and operating costs?

Any insight on this subject would be greatly appreciated.