How to Build a Medium-Term Rental Portfolio with James Hwang
Searching for the perfect strategy in real estate investing often leads investors to explore alternatives beyond traditional long-term or short-term rentals. Enter mid-term rentals—a Goldilocks approach that fits many investors’ needs. On this episode of Zen and the Art of Real Estate Investing, Jonathan delves into this niche with James Hwang, an oncology pharmacist by day and real estate investor by night.
Jonathan and James explore James's real estate journey, starting with the challenges his parents faced as rental property owners during his childhood. They discuss why James opted for a multifamily property as his initial investment, highlighting community-building and giving back. They cover James's introduction to mid-term rentals, including the income disparities between long-term and mid-term rentals, the systems and strategies James implemented for property management, and the considerations prospective investors must address before entering the mid-term rental market. James stresses thoroughly vetting tenants, the benefits of blending long-term and mid-term rentals, and leveraging equity to provide alternative housing to tenants. Finally, Jonathan and James explore the less flashy nature of mid-term rentals, the unique value proposition of James's properties, and using arbitrage as a stepping stone to the next level.
Jonathan and James cover the following points more in-depth:
Having people around you who are at the same level as or just a bit ahead of you can be invaluable. They will take the time to explain nuances that someone 10 or 15 steps ahead of you will not do. You can also share your knowledge and exchange resources.
Mid-term rentals can be the sweet spot for rental income.
PPL matters. Each rental should have the basic amenities, and James uses PPL (pets, parking, laundry) as his guide.
James is using arbitrage to build relationships and create opportunities for himself and the other party, and it becomes a win-win scenario for both.
Mid-term rental properties may not be on your radar right now, but James Hwang is excited to share this often-overlooked asset class that could be a winning product for you.
If you want to learn more about Zen and the Art of Real Estate Investing Podcast, check out http://www.trustgreene.com/podcast/zen/130 .