How Short- and Mid-Term Rentals Can Increase Your Cash Flow

By Shelby Campbell

With over two and a half decades of unwavering commitment to the mortgage industry, I am your seasoned Mortgage Loan Officer dedicated to helping individuals and families achieve their homeownership dreams.

How can you convert your property into a profitable business? Many property owners want to know how to turn properties that might not cash flow into money-makers.

With Sorcha Porter from Exp Realty, a mid-term rental specialist and real estate agent who owns the third-largest furniture rental management company in Portland, Mexico, we will teach you how to make your struggling property earn you money.

What’s the difference between short-term and mid-term rentals? Short-term rentals are typically for stays of less than 30 days, while mid-term rentals are for 30 days or more. You might recognize this model from platforms like Airbnb, where you can rent out a furnished home for a few nights or several weeks.

Why consider these rentals? These rentals often bring in 50% to 100% more income than traditional long-term rentals. For example, if your monthly mortgage is $3,000, but the market rent is only $2,500, that’s a loss. However, with the right rental strategy, you might be able to charge $4,500 for a short-term or mid-term rental, turning that potential loss into income.

By furnishing your property well, marketing it effectively, and setting it up for success, you can make properties that wouldn’t typically be penciled out for investors to generate income.

Here’s a real-life example from one of Sorcha’s clients who bought a duplex in the Mount Scott Arleta neighborhood of Portland. His monthly payment was around $2,950. The long-term property manager estimated he could rent the upstairs for $1,650 and the downstairs for $1,000—not enough to cover his costs. He was worried he might have to sell, which is never a fun situation.

But here’s what happened: We converted the basement into a rental, which now averages about $1,800 monthly on short-term platforms. The upstairs unit is now bringing in about $2,830. So, instead of losing money, he’s cash-flowing.

If you have a property and want to know whether it can pencil out as a rental, you can reach out to Sorcha at (971) 444-9155. For help with financing options, please contact me at (503) 809-8898 / (503) 572-8865 or shelby.campbell@fairwaymc.com.

We are also touring and doing education classes in offices that are interested in learning more about real estate. Definitely call us so that we can help you out.