Welcome to FlipSquad.io, where we simplify your search for investment properties. Today, we’re exploring a unique niche – flip and rent houses to traveling nurses. This approach combines the lucrative potential of property flipping with the stability of renting to healthcare professionals. Let’s unpack this strategy, focusing on location, type of property, and how to tailor these homes to meet the specific needs of traveling nurses.
Locating the Ideal Property
The key to success in this venture is finding properties within walking distance of hospitals. Why? Most traveling nurses prefer locations that eliminate the need for a car, saving them time and transportation costs.
Properties close to hospitals offer convenience for these tenants and ensure a steady demand, enhancing your rental’s desirability. Easy access to public transportation is a bonus. Additionally, proximity to amenities like grocery stores, pharmacies, and restaurants is important.
Choosing the Right Property
When it comes to selecting a property to flip and rent houses to traveling nurses, you have two primary options: single-family units or multifamily properties.
Single-Family Homes: These are often more readily available and can be easier to finance. They offer the flexibility to rent out individual rooms with private bathrooms, maximizing your rental income. However, they may require extensive renovation to create additional bedrooms and bathrooms.
Multifamily Properties: While harder to come by, these can be ideal if you can find one near a hospital. The downside? They often come with higher initial investment and can be more challenging to manage and more difficult to sell.
Financing the Rent
Understanding who pays the rent is crucial. Hospitals may sometimes include housing allowances in their contracts with traveling nurses, directly impacting your rent collection process. However, in many instances, nurses handle their own housing expenses. It’s essential to clarify this aspect in your rental agreements.
Designing the Property
To flip and rent houses to traveling nurses, focus on creating a space that appeals to traveling nurses. This means multiple bedrooms and bathrooms are a must. Each room should ideally have an en-suite or dedicated bathroom, providing the privacy and convenience these professionals need.
Most traveling nurses have pets. Excluding pets might lead to longer vacancy periods. You can implement a one-time pet fee and monthly pet rent to mitigate potential property damage. The property needs a small yard or grass area for small dogs.
Regarding budgeting for the property, include essential items and expenses that traveling nurses typically expect. For instance, most traveling nurses prefer rentals where utilities and wifi are included, so this should be considered in your pricing strategy.
Those accustomed to Airbnb standards expect the house to be fully furnished, along with basic necessities such as cooking utensils, linens, and bath towels. They expect to travel light.
Safety Features to Consider
Traveling nurses, working odd hours, and being new to the area will prioritize safety. Invest in security features like exterior lighting, secure locks, and possibly a security system. Consider smart locks for convenient, keyless entry, and ensure that the property is well-lit and has visible, secure entry points.
Pros:
- Steady demand due to the constant need for traveling nurses.
- Reliable, professional tenants who are likely to take good care of the property.
- Potential for higher rental income by renting out individual rooms.
- Being unattached to a traditional 12-month lease agreement gives the flexibility to adjust the rental price or hold your unit at different times of the year. In the summer (peak season), you can command a higher rental rate for your furnished units with utilities included.
Cons:
- Higher turnover with short-term leases. Traveling nurses typically have assignments ranging from a few weeks to several months.
- There is a need for more frequent management and maintenance with multiple tenants.
- The initial investment is ensuring the property has enough bedrooms and bathrooms.
- Need to furnish the home.
Investing in a property near a hospital to rent to traveling nurses offers a unique opportunity in the real estate market. Whether you opt for a single-family home or a multifamily unit, the key lies in tailoring the property to meet the specific needs of these tenants.
With strategic planning and targeted renovations, this approach can yield substantial rewards. Remember, thorough market research and understanding your tenants’ needs are crucial steps toward success in this niche market.
With that said, it’s important to ensure profitability in the rental market. It’s crucial to stay ahead of the curve and be ready to adapt your strategy as needed. It’s wise to explore various rental models, such as long-term rentals, Section 8 housing, Airbnb vacation rentals, and rentals geared towards traveling nurses.
While each option has its own income generation and profitability potential, knowing about all these avenues can be invaluable. This diverse understanding allows you to shift gears if one particular strategy underperforms, thereby maintaining a steady income stream from your investment properties.
Stay tuned to FlipSquad.io for more insights into real estate investments and strategies that set you up for success in this dynamic field.