Takeaways
- The current real estate market is challenging for cash flow.
- Midterm rentals provide a unique solution to cash flow issues.
- Investors need to adapt to changing market conditions.
- MTRs are designed for corporate housing and insurance placements.
- The quality of the property and tenant experience is paramount.
- Investing in MTRs requires a higher initial investment but offers greater returns.
- MTRs can be a part of a diversified real estate portfolio.
- The management of MTRs is less intensive than short-term rentals.
- Understanding the market dynamics is crucial for successful investment.
- The MTR model is exclusive and not widely adopted, providing a competitive edge.
00:00 – Labor Day recording + commitment to consistency
Kevin and Steve open with gratitude for staying consistent, even on a holiday, and set the stage for why this episode matters.
02:00 – Why MTRs are the solution investors need right now
Cash flow is tight. Kevin explains how DFY “reads the tea leaves” to anticipate market shifts and why MTRs were created as a cash-flow solution.
04:20 – Market context: why cash flow is squeezed
Steve contrasts today’s environment with 2008, explaining how higher rates and sticky prices made cash flow scarce.
07:50 – Why not short-term rentals?
Steve shares DFY’s deep dive into STRs, why they proved too volatile and risky, and how that pivot led to discovering mid-term rentals.
10:30 – The guinea pig phase
Steve tells the story of furnishing and converting his own Oklahoma City home into an MTR, validating the model firsthand.
13:45 – From experiment to proven system
How DFY carefully expanded from Steve’s test homes to 100+ MTRs across Oklahoma City, Tulsa, DFW, and Indianapolis.
18:30 – What exactly is an MTR?
Kevin defines Mid-Term Rentals: curated, furnished single-family homes leased for 30–180 days to premium tenants like insurance companies, corporate housing, and medical contracts.
22:50 – Sub-market strategy & limited inventory
Why the key is targeting markets with strong placement demand but limited competing MTR supply.
25:40 – Premium tenants, premium experience
Steve explains why MTR tenants treat the homes better, why turnover keeps properties pristine, and how the management team focuses solely on fulfillment.
28:20 – The “real estate double” analogy
Kevin positions MTRs as bigger bricks on top of a long-term foundation—a way to accelerate portfolio growth while staying conservative.
29:50 – Numbers and logistics
Typical purchase price ranges ($300k–$360k), furnishing/design costs (~$40k), and how tax strategies like cost segregation can offset those expenses.
32:20 – 1031 exchanges and MTRs
Clarifying how exchanges work when rolling into an MTR, and how furnishings factor in.
33:30 – Why MTRs are the definitive solution for 2025
Kevin and Steve conclude with why MTRs are unique, exclusive, and the clearest path to cash flow in today’s high-rate environment.
35:15 – Call to action
Want to see your own MTR analysis? Email Kevin at kevin@dfy-realestate.com or request a call at dfy-realestate.com.
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