Hi Lina from Texas-Congratulations on your interest in investing in mid-term rentals and you are wondering how and where to get started.I get this question frequently from investors.Sometimes and investor is looking to keep their property cashflow positive as insurance and taxes have squeezed cashflow by turning units into mid-term or short-term rentals.First off, ideally, the property will cashflow as a long-term rental should something disrupt the mid-term rental model.You will also want to have the property be near where there would be a demand for mid-term rentals (hospitals, universities, research centers).Monthly rents for mid-term rentals are about 20% (+/-) higher than unfurnished similar long-term rentals.There are property managers that will manage mid-term rentals for you and I always advise my clients to use property managers to keep their investment as passive as possible and for compliance issues related to Fair Housing Laws and local regulations.To Your Success!

Let's assume that the neighborhood is a C class and the median income of the city is greater than 3X of the market rent.Here are some of the considerations I've come up with so far:- Units are in need of renovation and capex is too high or not available- Unit quality is not the same as market - Seller is worried about losing tenants due to increase- Vacancy rates are high or filling units have been difficult- Rent increase would take multiple increases over multiple lease periods to get to market rate if seller is trying to retain the same tenant- Seller inherited property and just want to liquidate- Seller needs to liquidate quickly (financial burden, sickness, quick exit from land-lording)It seems like I might be missing a warning sign about a deal if they are selling with current rents that are under market; but again, this seems to be most of the properties I've underwritten.And in the same vein, what should I be worried about when purchasing a deal with under market rent with the intention of raising them after purchase. 

Quote from @Lorraine Hadden: I have client who are try to wait for interest rates to come down rather than buying what they can afford for the best rate and hold.

The agents are charged for this service no matter what so it's difficult for the agent to service from a time and financial perspective.

If you're at all interested in North Carolina, consider the Triangle (Raleigh / Durham) and Triad (Greensboro / Winston-Salem) areas, which are my focus for both clients and myself.

I have a client in Kansas City that does this.

One day a trend not make, but yesterday I have a listing that had a shockingly high number of showings, like 10 days worth of showings, and I also showed a buyer client a property that has been on market for 30 days and now has 3 offers on it.

It sounds like you have a lot of experience in this space, and I'm always interested in learning more.I think one takeaway is that this is a difficult asset class to own and operate, and just like @Jay Hinrichs mentioned, having a great team is essential!

As you grow, use 1031 exchanges to defer taxes and scale your portfolio.This post does not create a CPA-Client relationship.

For big BRRRR projects, hiring a project manager or having boots on the ground can be worth the investment to keep GCs on track and catch issues early.I’ve had OOS clients who’ve been successful both ways—some met their GCs in person and others didn’t.