How to Make 400% More Cash Flow with Medium-Term Rentals

[@jasonpayne8570]

I was rehabbing a house and didn’t really know what I was going to do with it. I saw part 1 and knew exactly what I was going to do. My wife bought the furniture online and I would put it together while listening to Jesse on repeat. I got my first contract for $3700 per month. I’m so stoked!! Thank you Bigger Pockets!

[@JesseVasquezAirVenture]

Jason this is amazing man! Congrats! Taking action is key! 🚀🚀

[@amymitchell7996]

Jason - What city are you in if you don’t mind me asking? This is where I’m struggling, not sure which city would be best to start in.

[@frosty129]

What type of contract did you get if you don’t mind sharing?

[@jasonpayne8570]

Chattanooga, TN. The contract was fire damage relocation

[@redarbz6545]

where did you list your house in?

[@lori5946]

I am a travel nurse and I rent for three months and some times up to nine months. I do like a W/D, full kitchen, comfortable bed and I like studios. Most of the rentals are not high end furniture. I hate carpet. It isn't just nurses. we have traveling and medical people. My current assignment this nurse rents out her basement studio and a room upstairs. I am paying $2200 a month. It is by the beach too. I like places I can walk to the beach or trails. I work in Federal Way Washington out side of Seattle. I rented in Kent Washington. It was a house and I rented the studio that was a converted garage. He rented the house also. He rented to any traveling professionals that were working remote work. I would like to rent my house to travelers and live out of a camper while I build out vacation cabins. Travel nurses pick there house not the hospital. If my agency does it my housing would be crap. I love your ideas packages very cool.

[@JesseVasquezAirVenture]

Hey Lori! Thanks for your insight! That’s really good information to have specifically from a clinician. And yes, it really depends on the assignment as many agencies pay a Perdiem, but a lot to handle physicians or specialty clinicians pay for the actual housing.

[@Eastbaypisces]

Good info

[@viraestrada7756]

My current tenants (displaced family), has a housing budget of $63k. When he booked my house on Airbnb it had a 20% discount, so when he needed to extend his stay I renegotiated the rate back up to the normal rate, $8000 per month. In this case, I was working with the family, not the housing specialist, he needed to get that approved with the adjuster. He told me, “Im not moving again so I’ll get it approved, we have 63k to work with, don’t worry!”. Of course, I have built a relationship with this family so we have been able to have frank conversations about his stay and the insurance claim. And they love the house feel very much at home there! This has been my experience so far with this displaced family, I’ve gone above and beyond what most host would do!!

[@JesseVasquezAirVenture]

That’s awesome, sometimes the homeowners do look for their own accommodations,, but this is a very rare occasion.

[@JesseVasquezAirVenture]

Glad you were able to help the family and have your place rented!

[@angelollamas4900]

How are you able to get these contracts or also how do u go about it as far as calling who to contacts

[@viraestrada7756]

@@angelollamas4900 My house is listed on Airbnb, Furnished Finders and Zillow Rental Mgr. If the home owner is looking for housing themselves, these are platforms they will probably search. If a temporary housing company is searching on behalf of the family, they will use these platforms as well. You can also use the B2B model and build relationships with the housing companies and they will reach out to you if they have a displaced family in your area.

[@lauraleich5741]

The main host brings a lot of insight to rental properties / real estate . Always thinking ahead. I appreciate his questions. These are things I’m also considering /questioning.

[@JesseVasquezAirVenture]

Definitely always think ahead, skate to where the puck is going

[@stevend481]

This is why its the biggest real estate podcast

[@rifleman42051]

This guy is really smart always thinking ahead! Great video solid information!

[@JesseVasquezAirVenture]

Hey thank you for the kind words!

[@SuperApe3030]

Finally talking about 15% str tax increase. Thanks for explaining it's a 30% total CA tax coming. Wish Rob said something on how airbnbs in Ca taking another big hit here and how it would hurt his business. Glad David eluded how he likes the outdoors but not the taxes policy of California. Kinda softball response though. Wish they would tell their California viewers to write their assembly and governor to stop the bill from going through, as it has not happened yet...it is a hotel lobby backed bill disguised as a solution for affordable housing. This will kill the middle class that thought they could retire off their vacation home and hurt the local cleaners, handymen, management co. who earn excellent income off str. People who bought recently will be forced to sell.

[@tammyrussell-rice5508]

Between the TAT, KTAT & GET (all taxes on Hawaii STRs), I remit 17.962-percent in taxes on my gross rents. Adding insult to injury, I must come out of pocket to make up the credit card processing fees!

[@SuperApe3030]

@@tammyrussell-rice5508 Crazy thing is those taxes will sound cheap to those in Ca. If this goes through I'm sure other states will follow.

[@JesseVasquezAirVenture]

@@SuperApe3030 no doubt

[@dstorm2.02]

Jess Vasquez is thinking like innovator. Like David Greene said, game has change so much how we use to look at real estate, as a set and forget it method. Now you have to be involved to get a great ROI on your investment. Business mindset will win, going forward in the future of real estate. You have to be creative and being different at the same time. Is going to be the key to your success in this game of real estate!

[@JesseVasquezAirVenture]

100’percent agree with you!

[@MikeHawk143]

Real estate has never been set it and forget it.

[@lakersalex]

Very informative and realistic depiction of the medium term rental process. Lots of great tips. Looking at walk scores, where tesla chargers are going in. Love that outside the box thinking.

[@JesseVasquezAirVenture]

Hey thank you for watching!!

[@TropicTrdr]

Just discovered your video and now I know what I'm going to do with a little studio condo that I'm renovating in Cocoa Beach, Florida. I'm a Bigger Pockets fan but never knew this rental niche existed except for Snowbirds. Thanks!

[@JumpJuiceNate]

Great video and tips! Love that he connects with local businesses to provide amenities! I would love a place with deals on the gym and/or coffee shops and restaurants. Smart!

[@XChen-zj1ek]

Hi David, great episode. You mentioned "a framework of 10 ways people make money in real estate" at 4:27. I'm interested in this framework, any book or blog you wrote about it? Thanks

[@natureinblum]

I am intrested on that to, can you tag me if you get the information?

[@lawrenbokman7819]

I am still confused about pricing. So let’s say three similar house are renting for $140 a night so then you would charge these contracts 10% less?

[@Boostly]

The episode we all needed 1:30

[@JesseVasquezAirVenture]

Indeed

[@carriemanchester-to7yt]

Biggerpockets have this guy on more! This channel needs some diversity, more importantly it also another way of thinking. Every other guest you have speaks on the same things in the same way.

[@lawrencebriggs]

Awesome follow up video!

[@JesseVasquezAirVenture]

Lawrence! Thanks buddy!

[@naureenkhashwji8039]

Never fails!!! 🎉this is the best real estate podcast.

[@JesseVasquezAirVenture]

Truly is! ❤

[@naureenkhashwji8039]

@@JesseVasquezAirVenture Jesse is very humble and gives full heartedly. He isn't calculated and doesn't hold back these true gems. Many at his stature stop responding to their DMs or take DAYS to answer, but never Jesse. He always gets back to you and exudes patience and kindness. His content is always fire and I'm so grateful for the information he provided on this episode! Thank you Jesse!

[@JesseVasquezAirVenture]

@@naureenkhashwji8039 thanks very nice of you Naureen! Grateful you’re finding value in the content 🙏🏽

[@JP-iq7pu]

Yeah mid term is definitely an untapped market in a lot of areas. Also keep in more and more non resort oriented cities are pushing back and putting bans on short term rentals. I am in a possibly really good market with a Level 1 teaching hospital, 3 additional hospitals, 4 colleges and universities, and various other industries that probably could make use of this. Problem is inventory is low and prices are a bit higher than avg. College students can be a bit odd furnished vs unfurnished though. What would you do in a situation where get a college student, but they prefer there own furniture?

[@JesseVasquezAirVenture]

Personally, I would furnish it. Having multiple different avatars is extremely important. In the mid term or medium term rental space. It also sounds like you’re market has a ton of opportunities.

[@JP-iq7pu]

@@JesseVasquezAirVenture Yes, but trying get a property in a decent area can get very competitive. But we also have a fair amount of hotels and extended stay hotels that are running cheaper than most mortgages would run in this area. Not to mention not sure how I could afford to even get into this right now.

[@tammyrussell-rice5508]

Great video. As an aside, I am lovin' the 'new' trimmed beard, David. It makes you look younger too!

[@peten409]

Near airports in small/medium size cities. I stayed in lived apartment complex near airport that was converted to mid-term rentals. And I never could book there so they must be full.

[@JesseVasquezAirVenture]

Jack sounds about right on medium size cities / airports

[@mnrois]

Appreciate this episode loaded with wealth of knowledge and realistic info that are extremely valuable. Thanks!

[@JesseVasquezAirVenture]

Thanks for listening 🙏🏽

[@natureinblum]

This information is very informative. Just remember to check when the video was created since the current market most likely would not be applicable.

[@luisfiaz2934]

Great content thank you Jesse👍👍✌️✌️

[@JesseVasquezAirVenture]

Hey thanks Luis! Appreciate you!

[@luisfiaz2934]

Missed your summit retreat in San Diego this year looking forward to attend to another one in the future 👍👍✌️✌️

[@JesseVasquezAirVenture]

Next one!

[@Meeeechy]

Snowbirds for medium term rentals 👌🏼

[@JesseVasquezAirVenture]

Yes!

[@Ccain-mx6jo]

28 days from what i understand is the limit to be considered “short term.” In NY (where i live) people can claim to be a long term tenant day 29 and can squat and NY protects their rights as long term tenants. Not sure im explaining it exact but its something along those lines.

[@carriemanchester-to7yt]

Makes sense!

[@jfarrar231]

Yes don't buy in blue states.

[@lorenazaragoza6411]

Thank you Jesse! I just built 712 sqft unit on my primary home property (adu) and I put up unfinished pictures on FF and had a 2 month booking for $2,000 per month before it was even completed! Also in the 209!

[@JesseVasquezAirVenture]

Wooohooo!! Lorena thats amazing congrats! 🎉

[@Eastbaypisces]

How much that cost? I got similar size adu I wanna fix up

[@lorenazaragoza6411]

@@Eastbaypisces I used my garage but knocked down the back wall and pushed it out 10 feet adding about 200 sqft. The build was about $120,000 plus impact fee around $3400, permits I think $2500, designer to draft the plans $3,500. It was probably more expensive because it has its own full unit Ac, it’s own sewage and electric. It doesn’t feed off if the main house. Built that way in case I want to age in place and rent out the main house in the future. Oh, it was an additional $7k to upgrade the conduit (electric) and replace circuit breakers since we upgraded electrical. Hope this helps. In Central Valley California

[@Eastbaypisces]

@@lorenazaragoza6411 oh ok thx, did u have someone do the work?? or u do some by yourself? im in the Bay Area, also have u found any renters already???

[@angelollamas4900]

Just bought a house in Modesto plan on turning it into MTR any tips of marketing am making sure your occupied

[@bravedream]

Thanks for sharing! Do you have to change insurance policy before converting to mid term rental?

[@midnighttrader2180]

What is ADU?

[@JesseVasquezAirVenture]

It’s a secondary unit on a property also known as accessory dwelling unit

[@powelldiesel7422]

He never addressed who do you ask for? When I call these businesses the person who answers doesn't know what I'm talking about. They eventually take name and number and never call. Or they forward me to another department then I get voicemail or disconnected 😢

[@JesseVasquezAirVenture]

It’s a process, it really depends on who you’re calling. There are so many different specific people that handle, Seay, healthcare, construction, relocation claims, it’s all different. I would advise you to continue to put in reps by making phone calls and most definitely following up.

[@trichome_t2995]

15% tax is the self employment rate also. Are STRs subject to self employment taxes?

[@carlmazur900]

28 day minimum for mid-term might be to allow people to rent for a miniuim of one month, including February.

[@shashankgouda6664]

Every time i watch biggerpocket it so amazing❤❤

[@JesseVasquezAirVenture]

🙌🏽

[@carrievillalobos5330]

Can midterm rentals lao be by the room with shared common areas?

[@arzeymahraqib2215]

This is a very exploitative model in the hood. Basically overcharging folks desparate for shelter. Speaking from my family experience

[@JesseVasquezAirVenture]

It’s not at all, it’s part of loss of coverage in an insurance policy. This isn’t a new strategy the family isn’t paying for it, it’s part of insurance coverage.

[@MikeHawk143]

Feel sorry for the people who invested in Ca Str deserts and mountains vacation destinations because of Robuilt and Tony Robinson. Mid term will not help these areas.

[@JesseVasquezAirVenture]

I think they will be fine. They got permits there!

[@theicemanfrost]

So what software is best? Or recommend.

[@anascancerjourney9922]

Not sure what the market is doing right now, but in my area the mid term rental homes on furnished finders are charging LESS than the long term rates in my area.

[@gabrielhaire7539]

Ben mullah! Can we look into getting him? On the 800 episode!

[@JesseVasquezAirVenture]

I like Ben

[@weinatalie6132]

My remodeled house in Furnished Finder in Daytona FL has no house request at all. Can anybody help me?

[@maplenook]

Vrbo

[@Adrian_Lillard]

Great one guys

[@JesseVasquezAirVenture]

Hey! Thanks for listening!

[@Adrian_Lillard]

@@JesseVasquezAirVenture thank you for sharing

[@GTContent]

28 days might be refering to February since it doesn't have 30 days in the month.

[@traciehebert9232]

How do you know who to ask for to speak to when calling a hospital to get information?

[@JesseVasquezAirVenture]

Just find out who the designs makers for housing are, starts with human recourses

[@ellenlopez3123]

How do we get in contact with relocation specialists for insurance companies? For amenities like car rentals, dog walking services etc. Is that added to the price of the rent per month is it an ala carte situation where they choose and pay extra for services wanted?

[@FuturesPlaybook]

How do you manage these mid-term rentals far away? What if something needs to get replaces, something broken?

[@jaunbonaysmith]

Hire a property manager

[@tieuvanphan9661]

Turn on Green David

[@jgg204]

In a recession, where manufacturing plants, office locations, and infrastructure projects grind to a halt....guys like this get wiped out in a fraction of a second

[@JesseVasquezAirVenture]

That is why you have multiple different avatars at the same time as I mentioned in here. If one goes down when you have another to fall back on.

[@natureinblum]

What did you do to get reimbursed for the large pet damages?

[@tdotty24]

Travel nursing is currently taking a beating in terms of pay. The pandemic pay is long gone and are less likely to rent from higher priced units. The rationale behind that is that they are breaking even or taking a loss if rent is too high.

[@JesseVasquezAirVenture]

If your listing on airbnb or Vrbo yes I agree, if you’re creating a business going after companies building business relationships that’s how you scale and that’s how you get paid more

[@tdotty24]

@@JesseVasquezAirVenture Thank you for the response, I’m going to look into mid term rental after I secure a property in the Bay Area. I’m only invested in the Midwest with long term tenants. Can I reach out to you if I have more questions?

[@zynx27x64]

what type of cars do you buy to be able to rent to them?

[@julieludwig8927]

Why not use Aaron’s Rent-All to furnish units instead of losing weeks waiting on ordered furniture???

[@Vudoo_Dezign]

Not sure if David was being sarcastic about "loving the new taxes in California" at 3:00 🤔🤔

[@JesseVasquezAirVenture]

He is being v sarcastic haha

[@zynx27x64]

what questionnaire survey do you use?

[@amymitchell7996]

What cities have the most demand and least competition? I’m looking for my next property, and really want to go the medium term route as opposed to a long term rental. Any info would be much appreciated.

[@JesseVasquezAirVenture]

North Carolina has a ton of demand

[@JayAttys]

They say 28 days or more so February doesn’t feel left out of the party

[@aromanmcse]

The interviewee said the word "again" like a million times. Why?!?!?! Because the same questions were asked using different words. SO ANNOYING!!! The guy in the green shirt didn't bring much value in asking unique questions. YOU'RE FIRED !!!

[@JesseVasquezAirVenture]

🫡

[@Meeeechy]

David the giant potato air bnb already exist. Rob is too late 😅

[@JesseVasquezAirVenture]

😮

[@lauraleich5741]

Darn

[@sharonrose340]

He says he has a non-refundable pet deposit. BE CAREFUL. In the state of Wisconsin if you call it a deposit, IT IS REFUNDABLE. You can charge a pet fee, but not a deposit that is not refundable.

[@kmarshie]

Maybe 28 days because its the smallest number of days in a month

[@andychen1947]

I believe 15% is paid by the guests, not host.

[@JesseVasquezAirVenture]

Believe you’re correct

[@SuperApe3030]

Well hosts will need to lower their rates so it's really out of the hosts pocket no matter what.

[@andychen1947]

@@SuperApe3030 sigh….we will see.

[@SuperApe3030]

@@andychen1947 Write you assembly and Gov to stop this str tax bill. Government has made str the scape goats, they want force us to rent monthly to fix "the housing crisis". As does the hotel lobby.

[@ovidioarroyo7816]

You wanna over charge for rentals, but the state doesn’t like it.

[@nxn718]

calling construction companies !!! wow!

[@leonie563]

These kids are crazy. Why would you want to micromanage like that from what age of 25? Where do they think they are going? Your superannuation when you hit 70 will be an Annuity. No welfare state. Jobs will be like on Star Wars in recycling. Where do they think CBDC will send their cash flows?

[@spencerhall4452]

The reason Airbnb has grown in the mid term rental is because of people who have bought or sold their home. This will end

[@leonie563]

It will as CBDC runs through the system and Banks call in debts, unemployment rises and these young guys lose their jobs and AIRBNB income doesn't cover their mortgages.....mortgages. Looks 401k and superannuation needs a complete overhaul to exclude housing as options to purchase and claim expenses on.

[@primeboysander]

PSA to all -- this video is an anomaly. It could only work if you live in a prosperous part of California. These numbers won't work in 93% of the country.

[@stevend481]

Lol it's not just california. That's false. Travel nurses and displaced people are everywhere

[@richie1317]

This podcast wasn’t it chief

[@Michaelwentsomewhere]

Great podcast but all I’m hearing is “be a hotel, or a specially hotel, or a nitch, perfect location, exclusive relationship hotel because the market has changed” Doesn’t give me motivation to go out and buy more properties. Sounds like last state - final juice from the fruit - something’s gotta change - instructions to keep buying at this stage of the cycle. I think I’ll be the stagnant party pooper and stick with the properties I bought.

[@JesseVasquezAirVenture]

What’s worked in the past isn’t necessarily going to work in the future. It’s about forward, thinking diversifying and adding a different avenue to the already difficult real estate market.

[@leonie563]

@@JesseVasquezAirVenture Governments are taking back housing policy. These jokers are the mules. They will lose. They will be trussed up with red tape and supply will flood the market to stay deflationary. Workers are losing their jobs and wages are declining. So they will burst the Property market. It's already happening.

[@thomasvarughese118]

Stop wasting time and get to the point please

[@samberry7805]

His analogies corny

[@manuelcantu5182]

Kristy wolf already Owens the potato air bnb, you guys should get her on here.

[@JesseVasquezAirVenture]

I wanna stay there!

[@closalbert2017]

What parts of California are they buying all these short rental properties? California lacks multi family homes

[@closalbert2017]

Maybe boutiques style studios maybe but honestly hard to find

[@coachempress]

I’m so excited to listen to this 🤎

[@JesseVasquezAirVenture]

😃 🎧

[@franknechie]

What’s a ADU?

[@JesseVasquezAirVenture]

It’s another structure on your property. Also known as additional dwelling unit.

[@neilquinn]

RE 35:00, it worries me with Blackstone and others entering the space. Lots more MTR inventory and competition is not good.

[@rrosales1641]

I really like this young man he's very knowledgable and informative, I'd like to meet him and do business with him. Thank you.

[@babubalu12]

One tenant base is people that move from east & north midwest to south needing a place to stay before they research & find a house or wait till they close on a new home being built from scratch.

[@jayflaggs]

They're asking"who do you call" like 10 times and he won't answer the question directly. I feel like he wants to be on BP but doesn't want to share details of his strategy.

[@jayflaggs]

33:00 this is literally the 5th or 6th time he asked the process of how to get a mid term contract and he dodged the question again. Very frustrating to listen to.

[@SuperApe3030]

@@jayflaggsguess he charges 10k for that..

[@jayflaggs]

@@SuperApe3030 Now it makes sense. Wow, that's scammy. I wouldn't invite a guest on my platform charging folks that much.

[@jaunbonaysmith]

​@@jayflaggshe made mention of it in pt1

[@viraestrada7756]

AirVenture and Robuilt student - 💯 Jesse so many pearls of wisdom. We learn all this in Jesse’s course. Don’t hesitate signup now!! ❤️🔥🤩

[@JesseVasquezAirVenture]

You’re the best Vira! I really appreciate you and your kind words! I’ve always been one of my favorites!