All Forum Posts by: Damon Aniton

Hey @Damon Aniton, first things first. There really isn't a thing as MTR. Anything over 30 days is a long term rental with a short lease time and should be treated as such.

You will need to have a real lease and do all the due diligence you would do on a LTR applicant.

MTRs are the new buzzword because people who don't really know much about running a STR keep making videos, posting blogs and articles about how it is all going to hell in a handbasket and you better get out now before you end up dead alongside the road. And hey!, here you can do MTRs now and make a ton of dough and it is super easy. Just sign up for our courses and you will be on your way!

Short stay long term rentals (see I just coined a term, SSLTR) can work just fine if you have it somewhere that it is needed. Near a major university, hospital or maybe a state capitol (rent to visiting legislators and staff).

In my area, a SSLTR isn't much of a thing. We are quite rural about 36 miles downlake from the nearest big town (if 50k people is big). But if you have both a school and major hospital nearby then it could work.

STRs work just fine if you are in the right area (vacation land), have lots of amenities, close to cool stuff and run a tight ship. We are on Lake Coeur d'Alene in north Idaho and we are booking pretty solid for 2023 and have 2 bookings for 2024. Not everyone is doing as well, but those that are on here are doing just fine for the most part.

Just remember it requires all the things you would do for a LTR, just with a shorter lease time. 3 months, 6 months etc.

STR would be an ideal way to go but the property is in New Orleans. And they are being very New Orleans right now. The city is not allowing any new permits to STR until at least the end of March. The craziest part of the entire scenario is I would be happy to rent 1 unit as an LTR and just STR for 5-6 days a month just to bridge the gap. I was not even looking to make a killing and get rich quick. I just wanted to own the property for as close to nothing out of my pocket monthly as possible.

0 Votes

I recently went under contract on a duplex in New Orleans and am evaluating several rental strategies upon closing. STR seems to not even be an option for at the very least the next 3 or so months because New Orleans is the definition of stupid. With that said I have 2 options when it comes to an MTR rental. The property is 2 3br 3 full bath with 2 en suites per unit.

Option 1: list and rent as 1 complete 3 bed 3 bath rental

Option 2: list and rent as 1 bed 1 bath with locks on the bedrooms and 1 "common" bathroom for privacy.

Market rents for the city can be all over the place. But depending on where in the city a house with this layout is located it can be as low as say $1800mo and the similar spec'd brand new house next door is listed for $2300mo. But it does not have 3 full bathrooms nor 2 masters. So my guess is I could go as high as $2400-2500 as an LTR. So on the low side $3000-3500 would be a good range as an MTR.

All of this is factoring in only renting 1 unit as I will keep/stay in the other for the next 12mo as this is on a VA loan.

0 Votes

New Orleans, Louisiana

My goals are simple and straightforward.

ASSuming the builder finishes the house by the 1st week of January like they say.

1) Close on the 30th.

2) Furnish both units by the end of the week.

3) Enjoy them for Mardi Gras

4) Give the MTR strategy to June to see how well it plays out.

5) Reevaluate and adjust.

0 Votes

Houston, Texas

Quote from @Chris Allen:

Quote from @Heather Brown:

Quote from @Bonnie Low:

If you go to the GSA website and search travel nursing contracts you can get an idea of the per diem for your area. This will give you some idea of what nurses/travel med professionals are being paid but bear in mind that they must have a permanent residence in order to qualify for the out of town per diems so they're usually supporting more than one residence on their pay. Generally speaking, if you're not getting any interest there's usually one of 3 reasons: hospitals in your area aren't using travelers as much or at all, you're asking too much, there's too much competition, or the price isn't appropriate for the finishings of the property. Allowing pets definitely helps. Having one bathroom per bedroom is a plus also. If you haven't already, get on some facebook pages for travel pros in your area. Share your listing. You'll find out right away what the issue is because people don't hold back with their "advice." Good luck to you!

Thanks for info on the GSA website Bonnie. I was not familiar with this at all. I looked for my area and it appears there is a monthly per diem of 2900-3000/month so that tracks with my listing.

Yes, to be honest, I have avoided posting on places like fb marketplace or craig's list because there is so much riffraff but maybe I need to suck it up and do it lol. Thanks again!

Not sure if the GSA of $2900-$3000 is including meals or not, but I can tell you as a travel nurse, we typically try and find a place to stay that is cheaper than the Tax-Free that we are receiving. I just pulled these numbers from an actual job posting for an ICU travel job in Chesapeake. Below is giving $2,743.96/mo in housing allowance ($3,113.34 allowance total). As a travel nurse, you are also having to pay any rent/mortage back at home, while typically also having to pay for your own insurance and what not. So if you are having to spend your entire allowance on additional housing, you are only working for $39/hr (which is like a staff job anywhere else). I would say your competetors at $1800-$2.1k are right on the money for what travel nurses would be looking for. What could you rent it for as a LTR?

Taxable Pay Rate:$39.00/hr x 36hr

$1,404.00

Non-Taxable Lodging Stipend:$19.06/hr x 36hr

$685.99

Non Taxable M&IE Stipend:$10.26/hr x 36hr

$369.38

Gross Weekly Compensation:$68.32/hr x 36hr

$2,459.37

Estimated Take Home

$2,192.61/wk

I am trying to understand the math a little better. I am looking at the GSA site for New Orleans, LA. If I am understanding correctly what the site is saying. As of next month they have a daily rate of $158 daily excluding taxes and another $74 for ME&I. This would mean they have a total for housing alone of $4740 if I understand your breakdown correctly. Not to include the food allowance.

So a realistic number a travel nurse would look to pay would be maybe 50-70% of what their housing allowance is to make taking the job profitable correct?

0 Votes

Quote from @Mitch Davidson:

I purchased a new primary residence in Asheville, NC in 2018, and the property included a 1-bedroom cottage. The cottage was an STR, in defiance of Asheville's rules, and I immediately converted it to an MTR (i.e., furnished monthly). At the time, the concept was rather unheard of, so it was an experiment. It's gone well though. After 4 and change years, one conclusion that I find myself sharing often is that even in a market like Asheville, a magnet for relocation, the number of potential tenants is rather small, and likewise that that pool is not as elastic as that of STR. Meaning, with STR, growing awareness of the concept has created more and more customers (i.e., more and more people are trying out the guest experience). With MTR, however, I don't believe the pool of potential customers can grow as dramatically, even with increased awareness. With STR, anyone with the money can be your next guest. With MTR, the next guest is only someone who is leaving their current home, for a while or more often for good; and is someone who wants a furnished place, who is okay storing personal belongings elsewhere, who wants the place for just a few months or so (and typically doesn't know how long), and who is comfortable with the risk that the landlord is likewise month-to-month in their commitment. Thus, I wouldn't be too quick to assume that MTR is a great idea for the next property in the market you're targeting, and would research the competition quite a bit before making the plunge. Many underwhelming STR's have been converted to MTR lately, after all. And in your market that trend may continue.

I literally just posted before I saw this questioning the reality of how good MTR actually sounds. The way it is pitched more often than not makes it sound as if this is absolutely the only way to rent out a property these days. Not as much profit as an STR and easily more than an LTR so why the hell would you not.

I am looking to see how realistic this honestly is.

1 Vote

Asheville, North Carolina

I see a lot of talk on the interwebs to suggest MTR as the new get rich eventually move. Not as profitable as an STR but easily more profitable as an LTR. Is there something I am missing here or is the math that simple? And I know quite a few medical professionals including nurses who are traveling nurses but I have never known any of them to run out and buy rental properties to rent out to colleagues.

0 Votes

Quote from @Apsu Hamilton:

Looking to get some feedback on me and my partners BRRRR Deal. Were under contract on a duplex for $160,000 and the estimated rehab is $135,000. Were using a Hard Money lender. Rehab Timeline is about 1-2 months. ARV is around 420k on the low end I believe. Each unit is 3 beds 1 bath and about 2800 total sq ft. We plan to rent each unit for $1800/m and then refinance down the line. Thoughts?

You can get brand new construction with at the very least 1 more bedroom for that price or lower at the cost of your ARV, depending on where in the city this is located. And this is assuming you pay asking. That should rent for those numbers or higher per unit. I just went under contract little more than a week ago for a 3 bed 3 bath. If you go new you would be trading equity for time and work spent I guess. It seems like maybe less headache depending on how you are looking at it and what your ultimate end goal is.

Given that you are quoting the estimated rental numbers I am guessing you are looking at both monthly profit but also pulling cash out to refinance and pay that loan when you are done.

0 Votes

New Orleans, Louisiana

Flood insurance on this property made it not exactly a bad move just more costly than I wanted to deal with on my first purchase. I ended up going under contract on a new construction duplex that should be done first week of January. It is a 3 bed 3 full bath with 2 en suites up and down.

Market rent as a straight rental for either unit is betwen $2300-2500 per unit. $3-4k as a mid term rental and per the analysis of Airdna an average of $325 per night at a 54% occupancy. With a full PITI of $3738 on a VA loan at 6.188% with just 1% for earnest and seller paying all closing.

Give or take the worse case scenario that leaves me with carrying costs of $1438 plus utilities which works for me. And give or take what New Orleans does with their STR permit rules come March I can easily offset this number greatly with a few nights a month on AirBnB/VRBO. Essentially giving me use and control of the property for less than 1k a month for the first year. Then after than I can do if nothing else than 2 LTR at market rate after the 1st year.

0 Votes

I am looking at pulling the trigger on my first home purchase this week. Possibly as early as tomorrow. Just waiting on confirmation of a few more things. The details are as follows.

4 unit 8 bed 5 bath total new construction. Purchase price of $899,999. No down, no closing and no PMI.

Unit 1: 3 bed 2 bath 1200sft currently rented for 2300

Unit 2: 2 bed 1 bath 884sft currently rented for 1500

Unit 3: 2 bed 1 bath 890sft currently rented for 1400

Unit 1: 1 bed 1 bath 700sft currently unrented

I will be using a VA loan and make the 1br my primary residence to fulfil the VA loan residency requirement and likely just AirBnB it from time to time. Being a fully remote IT person my income is well into the 6 figure range and I already have very low expenses. And this is before my VA disability pay.

I am not worried about the property cash flowing anytime soon. I figured in a year or 2 if the if the interest rates finally come back down some I can refinance and cash flow then. I am most interested in equity paydown than any monthly income. For the near future anyway. Even in the worse case scenario of a 0 occupancy I could carry the full mortgage.

I know this is a pretty big leap from nothing to home owner. Is there anything I missed or anything that would make this a bad investment?

0 Votes

Quote from @John Warren:

@Damon Aniton there is no one that can make this choice for you for sure, but I would tell you to buy in the best areas you can afford since cash flow isn't the big hurdle here. The better areas will also take care of the "tenant friendly" part of Chicago since you will have mostly awesome tenants in A and B class areas. Until I delved into C class areas, I never had issues with evictions and nonpayment very much.

That definitely makes sense. It would come with higher rents as well.

0 Votes

All Forum Posts by: Damon Aniton

Damon Aniton has started 18 posts and replied 72 times.

Post: MTR reality. Is something that sounds so simple be so real?

Post: MTR strategy in New Orleans

Post: 2023 Goals for MTR Investors ???

Post: Chesapeake VA Is my rent ask too high??

Post: Compared to STR, MTR isn't a huge, expanding market

Post: MTR reality. Is something that sounds so simple be so real?

Post: Duplex BRRRR Strategy

Post: House hacking for the long term

Post: House hacking for the long term

Post: New Investor. Choosing between 2 different out of town cities.