Book Summary30-Day Stay, by Zeona McIntyre and Sarah Weaver

1-Page Summary1-Page Book Summary of 30-Day Stay

Understanding and Implementing the Multi-Tenant Residential Strategy

What Are Medium-Term Rentals (MTRs)?

MTRs: Furnished Homes Leased for More Than 30 Days, Bridging Temporary and Extended Leases

Weaver and McIntyre define a Medium-Term Rental (MTR) as a fully furnished home that can be leased for a month or longer. As the name suggests, it sits between traditional short-term lodging like Airbnb, generally booked for several days or weeks, and long-term leases lasting a year. This structure offers investors unique advantages in today's property landscape.

MTRs, also known as month-to-month, executive, or traveling nurse rentals, cater to a specific niche of tenants: professionals on temporary assignments, people making home improvements, digital nomads, or those in transition between homes. By providing a comfortable, fully equipped space for extended stays, MTRs command higher rents than unfurnished LTRs, yet offer more stability and lower management overhead than high-turnover STRs.

Practical Tips

• Create a community group focused on MTR advocacy and education. By bringing together like-minded individuals, you can share knowledge, resources, and support to promote the development of MTRs in your area. This could involve hosting informational sessions, creating online resources, or even partnering with local businesses that could benefit from MTRs, such as companies that frequently host temporary workers.
• You can start by creating a simple spreadsheet to track MTR (multi-tenant retail) investment opportunities. Include columns for location, size, tenant diversity, and projected yields. This will help you compare potential investments at a glance and make informed decisions based on the unique advantages of MTRs.
• Create a personal inventory of belongings to streamline the packing process for temporary relocations. By categorizing items into essentials, non-essentials, and storage, you can quickly adapt to various living situations, whether for work assignments, home renovations, or transitions. For example, keep a digital checklist that can be modified for each move, ensuring you pack only what you need.

Advantages of Choosing MTRs

MTRs Generate More Cash Flow Than Long Leases and Are More Passive Than Short Rentals

According to Weaver and McIntyre, using MTRs is a powerful tool for investors seeking to optimize the income stream from their property investments. When compared to traditional long-term leasing, furnished MTRs can often generate significantly higher income from renting. For example, a typical four-plex might make $800 per unit with long-term rentals but could potentially make $1,775 for each with medium-term rentals. This increased income stems from the added value of a fully furnished home, ready for renters who are willing to spend extra for convenience and comfort. While MTRs offer attractive cash flow potential, they also provide a more passive income stream compared to the demanding nature of short-term properties. The reduced turnover rate inherent in MTRs means fewer interactions with tenants, less frequent cleaning, and a decreased overall management burden. Weaver exemplifies this, highlighting how she furnished an MTR in Nebraska remotely from her home in New Zealand. This underscores how MTRs can generate passive income, particularly with the aid of technology and a strong, organized team.

Context

• MTRs typically offer lease terms ranging from one to six months, which can attract a premium from those needing temporary housing solutions, such as people relocating for work or undergoing home renovations.
• Properties in desirable locations, such as near business districts, hospitals, or universities, can command higher rents due to their proximity to work and essential services, making them attractive for medium-term renters.
• Furnished rentals often include additional amenities such as kitchenware, linens, and sometimes even cleaning services, which add to the convenience and justify higher rental prices.
• Short-term rentals often need active marketing and frequent updates to online listings to attract new guests, involving professional photography, engaging descriptions, and competitive pricing strategies.
• With fewer turnovers, landlords or property managers spend less time on activities like conducting viewings, processing applications, and handling move-in or move-out inspections, which can be time-consuming.
• With team members potentially in different time zones, scheduling software can help coordinate meetings and tasks efficiently, ensuring smooth operations despite geographical distances.

MTR Strategy Fits Markets With Restrictions on Brief Rentals or Insufficient...

30-Day Stay Summary Acquiring and Evaluating Mid-Term Rental Real Estate

Financing MTR Purchases

Utilize Leverage Through Loans for Second Homes, Conventional Mortgages, and DSCR Loans

Weaver emphasizes the importance of understanding financing options when acquiring MTR properties, highlighting various types of loans beyond traditional mortgages that can be leveraged by investors. Second-home loans, for instance, allow investors to purchase a property with a small deposit (as little as 10 percent) and enjoy a favorable interest rate similar to a primary residence loan, with the stipulation of occupying the property for a minimum of fourteen days during the first year. This approach can be advantageous for investors seeking to furnish and personally utilize their MTRs while still generating rental income.

Traditional mortgages offer another avenue for financing, with greater flexibility in terms of property usage and a limit of ten loans per individual. With a minimum down payment of 3 percent for owner-occupied properties, investors can strategically employ the house hacking strategy, residing in one unit of a multifamily building while renting out the others as MTRs. This can significantly boost CoC returns and accelerate portfolio...

30-Day Stay Summary Building and Managing an MTR Team

Finding an Investor-Friendly Real Estate Agent

Seek Communicative Agents and Skilled Negotiators Who Grasp Your Approach

Both authors place a significant emphasis on forming a solid team to support your MTR business, regardless of whether you're investing locally or remotely. Assembling the right team, including real estate agents, lenders, property managers, attorneys, CPAs, contractors, and cleaners, can make a profitable, seamless experience instead of a nonstop headache.

Finding an investor-friendly realtor is crucial to your success as a property investor. Weaver underscores that an investor-friendly real estate agent is not simply a traditional residential agent handling home sales for individual buyers and sellers. Instead, a real estate agent who is favorable to investors possesses specialized knowledge of the investment property market, understands common real estate investment strategies like the BRRRR method, and can accurately analyze a potential property's earning potential. This includes identifying off-market deals, connecting you with other professionals in their local network, and negotiating favorable terms on purchase contracts and seller...

30-Day Stay Summary Operational Considerations for Medium-Term Rentals Investments

Funding and Equipping Midterm Rentals

Impact of Financing on Profits and Managing Cash Flow

Understanding the impact of financing on your MTR investment's overall profitability and income flow is crucial. Weaver analyzes various loan products, highlighting the trade-offs between down payment requirements, interest rates, and monthly mortgage payments. For instance, while an FHA mortgage with a small down payment can be advantageous for maximizing cash-on-cash yield, the added expense of PMI (private mortgage insurance) can elevate monthly expenses and impact overall cash flow. By running thorough calculations and projecting your expected income and expenses, you can determine the optimal financing structure to meet your financial goals and ensure a consistently profitable MTR operation.

Other Perspectives

• In some cases, the impact of financing may be less crucial for investors with substantial capital reserves, as they may not require financing or can absorb higher financing costs without a significant effect on their overall profitability.
• The analysis might be based on current market conditions, which can change rapidly, affecting the relevance of the...