The Real Estate Investing Club The Secret Rental Strategy That Doubles Your Income
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🏠 The Secret Rental Strategy That Doubles Your Income
WHAT IS A FULLY FURNISHED MIDTERM RENTAL?
If you've been searching for a smarter real estate investing strategy with higher income and less operational headache than Airbnb, this episode is for you. Host Gabriel Petersen sits down with Angela Healy, CEO of Avenue West — a corporate housing company operating since 1999 — to unpack the world of fully furnished midterm rentals, a powerful and widely overlooked niche in real estate investing.
Unlike long-term rentals where tenants supply their own furniture, or short-term vacation rentals where guests rotate every few days, midterm rentals sit in the sweet spot between the two. 🏡 Fully furnished and move-in ready — internet, streaming, linens, all included — these units are leased to corporations housing relocating employees for an average of about 99 days. That means roughly four tenant turns per year, far fewer headaches than a vacation rental, and significantly higher rent than an unfurnished unit.
HOW MUCH MORE MONEY CAN YOU MAKE?
The numbers are compelling. In Denver, a one-bedroom condo renting unfurnished for $1,800 to $2,000 per month can command $3,500 to $4,000 per month as a corporate rental. 💰 That is nearly double the income from the same property. Furnishing costs run about $10,000 for a one-bedroom and around $20,000 for a three-bedroom. When you factor in the premium corporations pay for quality housing, that initial capex gets recouped quickly.
FINDING THE RIGHT MARKET AND PROPERTY TYPE
Ideal markets have a diverse mix of corporate employers across tech, healthcare, oil and gas, and manufacturing. Denver is highlighted as a proven midterm rental market, while Abilene, Texas is emerging as a hotspot due to a manufacturing investment boom. 📍 About 70% of midterm rentals are one-bedroom condos or apartments, but single-family homes also work well for executives relocating with families. Prioritize Class A properties with doormen, fitness centers, pools, and controlled access — the amenities corporations expect when paying top dollar.
HOW TO FIND CORPORATE TENANTS
This strategy requires a different approach than listing on Zillow. Angela's team at Avenue West has dedicated staff managing corporate relationships and bidding on RFPs from large employers. 🤝 For individual investors, platforms like Furnished Finders and CorporateHousingByOwner.com are excellent starting points to attract corporate and traveling professional tenants. Partnering with an established corporate housing company unlocks Fortune 500 clients, and even after paying a management commission, most investors net more than going it alone.
MARKET TRENDS AND THE FUTURE OF CORPORATE HOUSING
A major trend fueling demand right now is the return of U.S. manufacturing, creating surging corporate housing needs in smaller cities. 🏭 Healthcare also remains a consistent driver of midterm rental demand across virtually every market. Angela frames this strategy as a portfolio diversification tool — if you have a condo underperforming as a long-term rental, converting it to a midterm furnished rental could unlock its highest and best use.
LESSONS LEARNED AND AI TOOLS FOR INVESTORS
Angela's biggest investing lesson: be adaptable. When a deal goes sideways, the winners pivot rather than freeze. 💡 Her advice to new investors — trust your gut and get started today. She also recommends FYXER, an AI email management tool that prioritizes your inbox and drafts replies in your own voice — a game-changer for any active real estate investor man
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