All Forum Posts by: Brad Gibson

Hi Assaf,

For MTRs we look for areas where any 3 of the following 6 industries are within 10 minutes of each other: General Hospital System, International Airport, Military Base, Major University (20k+ students), Metropolitan Tourism, Fortune 500 Companies. 

All of these are a draw for mid-term tenants and will help ensure occupancy. Post your MTR on airbnb and limit it to 30+ day stays, furnished finder, or even local facebook groups. We have success with all platforms.

A fully furnished MTR should be trading 25%+ above LTR rates- if you're not seeing that in your market there's likely not enough MTR demand to justify the model.

When you purchase a MTR be sure it will at least cover your PITI if you need to convert it to a long term rental. If you invest where there are overlapping MTR tenant attractions then you won't have issues with occupancy. Just keep the space clean and don't over-extend. Most MTR tenants are single or at most a couple. I personally think 3 bedroom houses are overkill. Our most successful MTRs are a mix of 1 and 2 bedroom fully furnished quadplexes.

Good luck! 

Hey Brad, Im also an investor and I'm  new here as well from Metro Atlanta area. And this is something I'm thinking of doing too. I see a lot of people here say look in areas near college campuses but I personally, that wouldn't be my target. I would target metro areas near public transportation. Ive fell on hard times in the past and had to resort to this lifestyle of living and it was always a line around the corner waiting for any vacancies. I merely this this style of living is for adults who are looking to get back on their feet, which are coming in by the dozens unlike the college kids who are home for the summer. Im looking to use this model for weekly rentals.

I have family, friends, and clients doing this in many states throughout the country and a common theme is that this is difficult to actually regulate and enforce. I think most often this becomes an issue with HOAs so that would be the big thing to watch out for

Hey @Brad Gibson, renting by the room can be a terrific strategy, if done right. It can also be a nightmare if done wrong. The general thought is that your best off near a university. However, you can just as easily do this anywhere near public transport. There are plenty of working-class individuals who would love to find something more affordable, such as a room to rent. As long as you properly screen them, this can work well for both you and the tenants. Plus, then your repairs and maintenance should be lower vs. a home filled with college students. 

You're off to the right start checking occupancy laws across the metro. However, many municipalities have occupancy laws that they do not enforce. So, while they'll tell you the law is exists, they won't enforce unless they get serious complaints. Run your rental with the proper screening and this shouldn't be an issue. A good way to check which municipalities have a hard vs. soft rule is to google "*city/county* occupancy laws." If it's all over the papers, chances are it's enforced more strictly than if you can't find anything. Make sure you also know the laws regarding number of cars parked out front. This is where it helps to be close to public trans. so that you can restrict # of tenants w/cars.

Hey @Preston Herd, check out Padsplit, if you're interested in renting by the room here in Atlanta. They help manage the tenants so it's much less hands on than if you go it alone. They have all the systems in place and can even connect you with a PM for the stuff they don't handle, allowing for a near passive investment. Feel free to reach out anytime if you want to learn more!