Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Medium-Term Rentals
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 4 months ago on . Most recent reply

User Stats

3
Posts
2
Votes
Leslie Daniely
2
Votes |
3
Posts

First Property As A MTR-Quadplex

Leslie Daniely
Posted

Hi BP.  I have been wholesaling for about 3 years off and on.  I'm ready for my first purchase and I want to invest in MTR.  My strategy is to buy multi-family properties near Level 1 trauma centers or 4-year universities.  I've identified one in Macon, GA and it's less than a mile from the hospital.  Would you recommend this strategy for my first property or should I complete a fix and flip first to get familiar with what all goes into rehabs?

Most Popular Reply

User Stats

122
Posts
144
Votes
Miguel Del Mazo
  • Northeast Georgia
144
Votes |
122
Posts
Miguel Del Mazo
  • Northeast Georgia
Replied

Hey Leslie,

I am an Atlanta native who has been buying, rehabbing and managing MTRs for the last 4 years with my wife. Last year (Sept '23), we were considering branching out to a new market within GA. To that end, I made a Google sheets document with every hospital system in GA along with the following data:

City

Zip Code

Rentometer 2/X   (what a 2 BR, any bath) goes for on Rentometer)

Rent Rentometer 3/1+ Rent (what a # BR, 1.5+ bath) goes for on Rentometer)

"Minutes to home"  (how far a drive it is for us)

"Staffed Beds"  (measure of how big a hospital is)

"Total Discharges" (a different measure of hospital size)

"Patient Days"  (yet another different measure of hospital size)

"Gross Patient Revenue ($000)" (you guessed it, hospital size)

Map Searches & Housing Requests (this and everything below was from FF.com stats page)

Furnishedfinder.com Page Views

Total Rooms

Private Rooms 

% Units Hotels

% Whole Place > 2500 

% Whole Place > 2k < 2.5k 

% Whole Place > 1.5k < 2k 

% Room > 1500 

% Room > 1k < 1.5k 

Page view per room

This allowed us to narrow our search to hospital systems near us (less than 2 hours) in a less competitive market (higher page views per room advertised on FF.com) with a significant % of units being rented on FF.com at higher rents (more $).  Looking back, I probably could've added average sale price in the area. This is all public data, except for the rentometer estimated rents (which you should expect to mark up for being fully-furnished).  BP has a good rental estimator that can replace the data from Rentomenter.


So how did Macon turn out? Really well...which surprised me. The 6th, 7th and 8th highest page views per listed properties were in Macon (out of 113 hospital systems in GA, counting ones with missing data). There is demand for MTRs in Macon that is not being met.

However, I feel that there is a reason for investors not meeting that demand. The population in Macon has been decreasing since before I was a kid, 40+ years ago. Decreasing population limits appreciation potential. There is no "good part" and "bad part" of Macon; it's all jumbled together except for a thin ring around Mercer Univeristy. That means that all neighborhoods have some element of "D class", so even if you make your property "A class", it will be held back in appreciation. Many properties in Macon lack central heat and air which I feel is a "must-have" amenity in GA. Adding it is costly, but doesn't have a good ROI which decreases the ability to force appreciation.


So, too long; didn't read: Macon has a lot going for it as market (big hospitals, light competition, reasonable expected rent), but we opted to not invest there because while the cash flow was appealing, we really want to see great appreciation potential in what we buy. Of course, YMMV.


I would definitely get a good look at the neighborhood around your possbile purchase, and see if you think a nurse would feel comfortable finishing a shift and coming from the hospital to your quadplex alone and in the dark.

  • Miguel Del Mazo
  • Loading replies...