Mid-Term Rentals: The Definitive Cash-Flow Solution for 2025 and Beyond Cash flow is tight. Interest rates remain high, home prices haven’t dropped, and rents are still catching up. For many investors, that means traditional long-term rentals aren’t producing the monthly income they once did. But there is a solution—one we’ve been building, testing, and perfecting for nearly four years: Mid-Term Rentals (MTRs). In this episode, Kevin and Steve break down why MTRs are the premium answer to today’s market challenges. You’ll hear the full backstory of how DFY validated the model, the types of tenants and contracts that fuel MTRs, why they deliver nearly double the cash flow of long-term rentals, and why they’re the single most important strategy for real estate investors heading into 2025. If you’ve been wondering how to generate meaningful cash flow in a high-rate environment, this episode gives you the definitive playbook.
Takeaways
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.
Kevin Clayson (00:02.487)
Welcome to the Moneyball Real Estate Show with Kevin and...
Steve Earl (00:06.126)
Steve, how's it going, Kev?
Kevin Clayson (00:07.554)
What's up, man? Hey, look, we, Steve, you and I, we're different for you, buddy, because today, technically, the day that we're recording is Labor Day. And this, but it's interesting to me that on Labor Day, people don't work because it's Labor Day, but we, we're looking at the definition. saying it's Labor Day, so let's do a podcast. Let's put in some work. Let's do a podcast because we have awesome stuff to share. So thank you for sharing part of your, air quote, vacation day.
with me and this wonderful show here, Steve. We're here to do it.
Steve Earl (00:41.612)
Yeah, no, I'm excited to stay consistent. You we made that commitment to each other and to our listeners that we didn't want to miss ever again. Like we are on this and committed to it. Like it's an exciting opportunity to talk about the things that we love doing. It's like, I don't know about you Kev, but when, you know, when I'm just like sitting idle, my brain goes immediately to real estate, to my business. It's like, it's what I love to do. So.
Kevin Clayson (01:07.216)
Yeah, I don't know how to sit idle anymore. It's so interesting. The older I get, it's like, you know, we have all of these things in life that should make our lives less busy, but we somehow get more and more busy. And I swear, like my ADD has like just, I don't know if I always had it, and it's just now sort of been exacerbated, but like my brain is just going constantly. And so sometimes we have to get on a podcast and pour all the cool stuff out that we're thinking and experiencing so that it, you know,
doesn't explode inside of our chest. Or yeah, or head. Well, awesome. Well, thanks for joining us, everybody. We appreciate you. I hope that you are having a wonderful week. Hope that you've got a great week ahead. Today, Steve and I wanted to spend a little bit of time and we wanted to talk more about something that we teased a few episodes ago, but we've never really done that I know of a full dedicated episode to this. And this is a big part of what Dunphy Real Estate
Steve Earl (01:38.03)
Orbit. Yeah.
Kevin Clayson (02:03.535)
has really been focused on, has really been helping a ton of clients with, and that honest to goodness is a massive solution in today's market. You know, as I talk to clients all the time, Steve, I always say, I always let them know that you and I.
We're constantly trying to, for lack of a better term, read the tea leaves, right? We don't have a crystal ball. We don't know what's coming. But what we can look at is we can look at economic indicators. We can look at what's happening in the market. We're in the business of real estate transactions day in and day out without fail. And so there's some information that comes our way that we have that is very germane information to whatever is going on right now. And with that, we're constantly trying to innovate and create real estate products
that can be a solution to some of the problems that we are seeing in the market. this has, I don't know if it's ever been truer than what we've done and what we've tried to create with our incredible midterm rental product. Now, I don't know anybody else that's really doing midterm rentals like this. I don't know anybody that, where this is a big emphasis, but I thought it would be really good for us to jump on the show and talk about what is,
one of the definitive cash flow solutions in a market where there is not much cash flow. Look, we talk about it on the pod all the time. Cash flow is not the only thing to consider when you're buying real estate, but we sure like it. And knowing that cash flow was gonna get tighter and tighter as we were reading the tea leaves, looking ahead in the market, realizing interest rates are gonna come up, rents are gonna take some time to catch up, purchase prices are elevated right now, that whole environment means that cash flow
is not as prevalent as it once was. Now we don't care. Now is always the right time to buy real estate. There's so many ways to benefit from real estate. There's that cashflow was just one of those ways, but it is a way, it is something that a lot of people consider. They think about when it comes to real estate. And so as we were looking ahead, trying to read the tea leaves, we knew, you knew, we needed to come up with a better cashflow solution for the market that was coming, for the market that we're in.
Kevin Clayson (04:13.612)
and midterm rental seed has been the thing that has been a tremendous cashflow solution in a market where there's not a lot of cashflow to be had.
Steve Earl (04:23.406)
Yeah, it's really interesting, Kev. I mean, we've been doing this for a long time, know, 18 plus years, I've been investing in real estate for 20 plus years. And we've been a business for a long time prior to done for your real estate, you know, I was in the construction world. And what I've found in business in life, quite generally speaking, is necessity is the mother of all invention. And it's one of the good things about a market that's constantly changing. And you know, when we've talked over the years about
Kevin Clayson (04:47.417)
Yeah.
Steve Earl (04:53.58)
the real estate cycle, what's interesting is that that cycle, it's never ever the exact same cycle. Like the different needs that come about based on the different circumstances that are bringing about the changes in the cycle are completely different, like every single time. Back in 2008 during the Great Recession, you know, it was a mortgage crisis, right? This time around where real estate has, you know,
the market has slowed and declined in many areas has been more driven by the fact that home prices went up so dramatically and they haven't dropped dramatically, but interest rates have gone up, which has made it more difficult for people to get into homes, both to live and to invest in. The higher interest rates and the higher prices has caused cash flows to take a significant hit.
Kevin Clayson (05:30.242)
Yeah.
Steve Earl (05:47.362)
And like we say, cashflow of all the benefits that cash that real estate has, cashflow is the least of them in terms of like the benefits that come, but it is still an important benefit because it's what allows you to sleep well at night during the ownership of the properties where you're not always having to put money into the properties. Now we've talked about that concept as well.
and having to put money into properties when you look at it from the right perspective, it's not a bad thing. However, it's a better thing if you don't have to put money into it, right? If you actually get to have money come out to you. And so, back a few years ago, as we were looking at this and anticipating and seeing that cash flows were being squeezed, we thought, is there a product that we could get into that we could systematize and put
put in place processes and a way to help our clients do it where it was still not super time intensive, where the risk was still minimal and where it was easy to own because the people that we work with are busy professionals. They're not necessarily people who eat, drink and sleep real estate like we do. And there's lots of investors that that's what they do. They eat, drink, sleep, they live real estate. But our clients, you know, they don't, they're...
They're members of society, they're busy doctors, dentists, they're teachers, they're busy professionals. And so we wanted to come up with a solution that was as done for you as long-term rental properties. So Kev, as you remember, we really dove into short-term rentals because it's like, man, it's like there's a lot of potential cash, ongoing monthly cash flow with short-term rentals. So we really took a deep dive.
both from just kind of a financial basis to take a look and see what's the financial opportunity. And then we dove even further. We interviewed a lot of different companies. We took some trips to have conversations with companies who manage hundreds and in some cases thousands of properties and took that deeper dive really to realize that, know, short term rentals are great, but they are more time intensive.
Steve Earl (08:08.972)
and they are significantly more risky. a lot of, you know, it's kind like we stay out of markets that are super volatile. That's why we left Phoenix and Nevada, because they're great markets when they're up, but they tend to also have pretty dramatic falls. And so we made the decision that, that is just too volatile for what we wanted. We wanted some, we wanted a little bit more straight line growth.
as opposed to the huge swings. And what we found is that short-term rentals tend to be a little bit more volatile. They have the high ups, but they have the low downs. And so we kind of started to back away from that, and we started to look for other solutions. And it was interesting as I continued to dive into some of these other solutions, in looking for
short-term rental property managers in some of our other markets, I came across a company that did midterm rentals out in our Oklahoma City market. And at the time, was like, midterm rentals? I honestly, didn't really know what that was other than I knew that there were different versions of being able to rent properties out to like corporations who had executives that would move around or there's like
nurses who travel around the country and that kind of a thing. This particular company that I kind of ran into, they weren't really a company that promoted themselves to rent to other people. They had their own portfolio and they kind of had a little bit of a semblance of, if you want to come and have us help you do your property, we will, but that's not what...
they focused on, they mainly were just doing their own portfolio. And so when I contacted them, they're like, hey, yeah, we're totally open. Like, we'd love to talk to you. you know, I told them a little bit about Dunfee Real Estate, and they got kind of excited about the idea of maybe being able to partner with us. But I really didn't know if they were, if it was real, what they were sharing with me, because ultimately, they're getting about double the long term rent. And they were pretty consistent with the small portfolio that they had. And so
Steve Earl (10:32.142)
I got to know them. got to know the owners a little bit better. And I decided I owned a few properties in Oklahoma City. And so I was like, well, maybe maybe I could kind of be the guinea pig and I could test test it out. So that's exactly what I did, Kev. I met the owner of the company out there. And for at first swing here at bat, I did all the work myself. I flew out there. I spent about 10 days.
Steve Earl (10:59.692)
I got all the rehab done on this property. I transitioned it from a long-term to a mid-term because it just so happened that this was an anomaly of a house. was in the right area, it right type of property. It was already like a four bed, three bath, three car garage. It was newer in a really nice community. I couldn't have done it if it were like some of our other properties.
Kevin Clayson (11:23.746)
It was like a 900 square foot home that was 100 years old at Winter Works, is that what you're saying?
Steve Earl (11:29.326)
Well, or even one of our 1500 square foot homes that wasn't quite like, it wasn't kind of like in that elevated neighbor that we try and really, you know, jump on, right? you know, I jumped into it and I did all the work myself. I furnished it, I sourced everything. And then these guys, they came out and they're like, wow, you did a pretty good job. And they helped me kind of.
finish up some of the details, like the things that you need to have in the home, the kitchen supplies, that kind of a thing.
Kevin Clayson (12:01.984)
So the real question, Steve, before you continue, the real question is when you went and did all that on your own, how many hours did you spend building IKEA furniture? Do you know? Do you have a, I'm just kidding.
Steve Earl (12:10.958)
Yeah, I spent, you know, 15 hours a day for those 10 days that I was out there.
Kevin Clayson (12:20.383)
So, so many Allen wrenches, yeah.
Steve Earl (12:22.784)
yeah, like I, and so many trips to the store. Holy cow. The people at home, cause I was buying all the, you know, the wall hangings and all the different decorations and stuff. was like, my goodness. Cause I was kind of shooting from the hip, but anyways, once it was finally done, you know, they put the finishing touches on it and, and then they got to it out. And I was like, my goodness, this is for real.
Kevin Clayson (12:27.091)
Yeah, I bet.
Steve Earl (12:51.886)
And, you know, we, you know, I tested that home for about six months. And then, uh, I picked up another property and I tested a second one out there. And then, and then, because, you know, we're pretty cautious, we're pretty conservative with our clients. Like we don't like them to be the Guinea pigs. Um, you know, we, uh, um, uh, I partnered with a few individuals to do a few more properties. He's got a good handful under my belt. And about 18 months later, um, going on.
You know, two years, we decided to really open it up to a handful of our clients and allowed them to kind of jump in and, to very slowly move into it. And now Kev, fast forward another, you know, two years later after that. So we're about three and a half years into this now going on four years. We've opened it up to our clients. We still haven't really promoted it, you know, publicly yet. It's not on our website. I don't think.
Kevin Clayson (13:50.741)
No.
Steve Earl (13:50.887)
but we're, we're feeling pretty comfortable. We're, over a hundred homes now. And, it is what, what we started out, you know, knowing that it is. And what's been really fun is we've gone from Oklahoma city. helped this company expand into Tulsa. Then we expanded into Dallas, Fort Worth. And we recently, about three months ago, we opened up Indianapolis. And our goal is to have midterm rentals, MTRs in all of our markets.
and to expand beyond there. MTR really opens up the opportunity to be in any market where it makes sense. It doesn't necessarily have to be one of the markets where we are currently in. We can expand beyond that. And so we're at that point where we're super excited about midterm rentals because they overcome the cashflow question. They overcome higher interest rates. And what's beautiful about it is our clients own these properties 100%. It's just like
our regular program, you get 100 % of the benefit. You get all of the benefits of appreciation, principal pay down, the tax advantages, and of course, the cashflow. And those are all the great benefits that you get along with the higher cashflow. The other thing, Kev, that I really like about this program that we've developed and vetted over the last almost four years now is that because of the shorter term rentals, know, typically the...
the lease contracts don't go beyond six months. Sometimes they do, they'll go eight, nine, 10 months, not very often, but closer to six, and sometimes they're shorter. Sometimes they're three months. And in between those contracts, we do nightly rentals, typically not less than seven to 10 days. But because of the shorter terms of the rental contracts, our property managers are in there more frequently. And because,
this is kind of a short-term rental project for our tenants, things get fixed in a different cadence as well. And because when a new client comes in, this place has to be pristine and in kind of original format, like things get fixed and upgraded on a more constant, consistent basis. And there's less of it that needs to be done because
Steve Earl (16:18.796)
Like people are just temporarily in the homes, but it's not like they're there and they're like, okay, we're living here and we're getting comfortable, right? in terms of, mean, of course our clients get comfortable, but it's not like they're not settling in for the long haul. And so because of that, they tend to live a little bit differently. And the other, the other thing is that it's not quite like they're like,
they're living there, living there, they still have their home, which these are tenants who are living there while their home is being repaired by their insurance company because of a flood, a fire, hail damage, hurricane damage, tornado damage, whatever the case may be, whatever happened to their home, it's being fixed up. And so they're still living in their community, which is anywhere from five to 30 minutes away. And so they're there and
and they're living their lives outside of the home and then they're coming back to sleep. They're coming back there. They're not like spending all day in the home like you would in a typical normal rental. So over time, like we've learned some of these things and it's real interesting. If you go on our property management team's website, these homes are so awesome. They're so nice, so beautifully decorated, so beautifully furnished. It's just, it's a different experience. It's a different.
ownership experience. And because our, property management team has been able to focus on nothing but fulfillment and operations, they do zero marketing. they're not like we are their marketing arm, right? We bring them the clients every single month. And so they don't have to spend any time that they get to focus exclusively on the experience of the client on the operations of their client experience.
and then on the upkeep and management of the property and providing both a unique and amazing experience for our tenants and a pretty unique and amazing experience for our clients. It's been, it really has been quite phenomenal, Kev.
Kevin Clayson (18:32.602)
Yeah, so I think what would be good is let's go through exactly what is a midterm rental. We call it an MTR for short. Some of you probably already know, but I'm just gonna hit a couple of the high points and then Steve, add whatever you feel like you want to. what we're talking about here is, and I appreciate Steve kinda telling us, where did this come from, right? Cause I don't know that anybody, maybe a few of you, if you've done MTRs or you've been able to attend some of the webinars we've done where we've talked about it or maybe you came to an intensive, but.
Steve Earl (18:35.98)
Okay.
Kevin Clayson (19:01.948)
I don't know how many of you really understand what that is and what the story was of how we researched this, how we landed on this kind of product. It really is kind of a niche product. And so the idea of a midterm rental, I've mentioned it on the podcast before, it's a real estate double, okay? Little bit more risk, little bit more reward. These are properties that are furnished. They're optimized for what we would call midterm leasing, okay? So they're, you know,
These are properties that as we go into the, so Steve went through and kind of retrofitted some of his properties that fit the criteria. That is not what we are doing today. What we're doing today is when our clients are shopping for the idea of an MTR, they're looking at doing a midterm rental, we are finding, evaluating, putting a property analysis together specifically for the idea of a midterm rental. So our midterm rental team, our management team that's in all of these markets,
They are vetting these properties with our agents to make sure it's a good fit for midterm rentals. And so just so you know, every feature guys on these midterm rentals, every feature from layout to location to design, the ideas for it to support higher monthly cashflow through these like 30 day to 180 day contracts with these excellent premium tenants like Steve just described. Anything you'd wanna add to that.
that main point of criteria, Steve.
Steve Earl (20:30.626)
Yeah, no, actually, that those are some good clarifications keep going.
Kevin Clayson (20:34.652)
So here's the other thing, these are homes that are located in a target sub-market, okay? Now, the reason why this is a targeted sub-market is it has to be an area where insurance placement, where corporate housing, where medical contracts are abundant and available, okay? At the same time, know, competition from, we want competition of similar midterm inventory to be limited.
One of the things we've always talked about with our long-term rentals is I would say, generally speaking, we don't go and buy homes with our clients where like the entire community is all rental, right? We love to see a healthy mix of primary residence owners and rentals. With these midterm tenants, these midterm properties, these targeted sub-markets, it's gotta check the box of, you know, that there's a lot of need from a corporate placement or corporate housing medical contracts.
insurance placement standpoint, but also not in an area where there is just a saturation of these types of properties. Now, because there's not a lot of people on the market that are in the market that are doing this, we have not really run into any of those complications, even in a market like Oklahoma City, where we've done a lot more of this. Like if you go and look at, you know, if we were to show you the addresses of a lot of the midterm rentals that we've done.
you'll see that they may not necessarily be in Oklahoma City proper. They may be in some of the nicer areas that aren't too far. They may be in Oklahoma City, but you think about it like this. Take a city like Oklahoma City, just as an example. It's massive, it's a big city, it has sports teams. When you think of the amount of homes in a given market, and then from there, what percentage might be rental versus might be owned by primary residence buyers?
then scale down from there to the handful of homes that would be available and designed specifically for a midterm rental that are then, you know, where we're working with the insurance placement and the corporate housing and the medical contracts. You can see that the ripple that that home would have in a larger market, oh, and then you scale out from there, you go not just Oklahoma City, but let's look at Yukon and other areas that are near Oklahoma, but may not be Oklahoma City proper.
Kevin Clayson (22:54.382)
I just wanna point this out that sometimes when we're investing and we're looking at this stuff on a regular basis as you guys are reading the newsletter or looking at properties on the website, it could begin to feel like there's a saturation. Guys, there is so much inventory. There is so much need for this type of product and just homes in general where people need to live. That is something we are vetting. That is something that we are looking at. We want with this product specifically,
We want midterm inventory to be very limited in one of these larger areas. And that is just a key to making sure that we're going to be collecting those higher rents and we can Airbnb in between if we need to. But where we're really dialing that in as we're looking at the property from the outset before we're going through the process and making this available to a client to potentially invest in. Anything you'd add to that,
Steve Earl (23:49.743)
Yeah, other than you know, what you're describing and what I described a minute ago, is that this really is it's a premium experience. It's a premium program. It it has all the benefits of a long term rental just at an elevated level of both tenants, quality of home, cash flow, like all of all of those elements are just elevated. As you know, a large degree.
And so it just feels like, you know, just taking your investing business to a new level of confidence and profitability. And just there's something about knowing that the properties that you own and are renting out are just premium all the way around.
That's the sense, that's the feel that I've had as I've added these types of properties to my portfolio. I still own a number of long-term rentals, which the Dunfrey Real Estate long-term rental is also a great product with great property management. But just take that and elevate it by two or three notches. And there's just that kind of sense to it. It's hard, it's kind of an intangible.
from what I'm trying to describe. And I'm probably not doing it, you know, at service to try and describe it like that. But there's just something about the midterm rental done the way that we do it. There are other midterm rental type companies out there and individuals that do it, but they're not doing single family homes, they're doing apartments. And they're putting in cheap furniture. Like, Kev, I'm telling you, like cheap.
cheap furniture. It looks okay. But the like its lifecycle is significantly less in the sense in the field for for the people who renting is just it's just it's it's a significantly different product than what we're providing. We are providing like the premium quality product program of the MTR world.
Kevin Clayson (25:47.395)
Yeah.
Kevin Clayson (26:06.509)
Yeah, and I think that I love the word curated, right? I feel like what these properties are with this experience is it's a curated experience, right? It's strategically curated and maintained and priced so that it can create maximum ROI, right? We're talking premium experience. And the whole idea here is all this does, it's another real estate product that is something one ought to add to their
investment portfolio. you know, we still have a lot of long-term rentals. We do a lot of long-term rentals. I like to look at it like this. This is kind of the analogy that I use is the basis of my real estate portfolio is long-term rentals, right? Those are the cornerstones. Those are the bricks. But then we can layer, you know, slightly larger bricks on top of the foundation, which could be MTRs, right? And the reason why I say that they're larger is you're talking about a more expensive purchase price, right?
You know, generally speaking, you're looking at 300 to 360,000, I would say for most of these. You know, you're looking at, there's still single family homes, but a lot of them, some of them are two car garages, some of them are three. There's some that are three bed, two bath, but a lot of them are a little bit larger, four bed, three bath, something like that. But they're still in great areas, still curated so that the numbers and the experience is premium for both.
the companies that are placing tenants in the property. And that's the other thing I just wanna double down here. Generally speaking, this is not individuals that are looking for a property. This is, like I mentioned earlier, this is insurance placement, right? So you're effectively renting to the insurance company or corporate housing, right? There might be some large project. There's corporations that need to place people in nice accommodations that's not a hotel, because they're gonna be there for a few months.
working on a project or something like that. It could be medical contracts, right? Traveling nurses, that sort of a thing. So it's a different type of tenant. You're not renting directly to the tenant per se, as much as you are these agencies, these corporate placement agencies, you know, these insurance companies. So it changes the dynamics, but this is why that we know that these insurance companies or these medical contract folks that are looking for placement,
Kevin Clayson (28:26.561)
They're looking for an elevated, more premium experience property, and they are also therefore paying a more premium rent. And so it is different than long-term rentals. It's why it's a double. Little bit bigger bite of the apple, little harder swing at the bat, but you're still getting on base. We're not looking to hit home runs. We're not looking to crush it out of the park. We're looking at a higher cashflow product, right? And again, we know cashflow is not the only thing. You know, I would say in general, for anybody out there kind of thinking,
how important is the cash flow? Look, if you could get $500 a month in cash flow and you owned a property for let's say 10 years and you could get 500 a month every year versus that same property growing at 3 % a year from appreciation standpoint, the $500 a month net positive cash flow is gonna make up 1 1⁄2 to 2⁄3 the amount of the appreciation over the same timeframe at just 3%, right?
We want them both, but I'm making the point that cashflow is not the end all be all, but it is nice to have along the way. But a couple other things that I want to hit before we conclude the episode is these are more expensive, both from a purchase price standpoint and from a furnishing design and placement standpoint. You're going to be spending another 40 ish thousand dollars after you close on the home to get the furniture in the property, to get the property designed and ready for these tenants. Now,
That means your TOP is gonna be a little bit higher. Your total out of pocket expenses on a property like this, it is gonna be a little bit higher, but there are ways to offset even some of that additional expense just from a tax benefit standpoint, right? You could go do a cost segregation, which is something we'll talk more about, but it's a study that basically separates everything in the house out. The stuff that you could depreciate that has a lower life expectancy versus the actual property that has a longer life expectancy.
and you could take more tax benefits or depreciation benefits on something like the furniture upfront. It's an additional expense in order to get the property rented out and ready. Those are things that can offset some of a tax burden that you might have in a given year. Now, the other thing with that, just so everybody knows, are we able to use a exchange to move from, let's say, a long-term rental into a midterm rental?
Kevin Clayson (30:50.859)
The answer is yes, but you can't use money from the 1031 exchange in the 1031 sort of tax protected environment to pay for the furnishings because the furnishings are gonna happen after closing, right? So you can use it as a 1031, but we'll have to get strategic about where are those dollars coming from in order to furnish the property. There's some tax offsets that could take place.
It's just one of those aspects of this type of investment that needs to be navigated with people that know what they're doing, but it is something that we are very well versed in, we're very familiar with. So larger home, more out of pocket, but a beautiful home, rented not to tenants, but to something like an insurance company where you're collecting sometimes two plus, two X the rents because it's a midterm rental and it's a curated premium product.
And on top of that, there is still, you're in a single family residence. You could always roll it back to a long-term rental if you needed to. It's not a massive home, it's a slightly larger home. It's a nicer home, it's a nicer area. The property managers are in there on a more regular basis because of the turnover. So it is another beautiful way to grow your real estate portfolio and to get to 10 properties. It's just, this is a double instead of a single. That's really, at the end of the day, that's really what I think
everybody should be considering, but you should consider this as a potential part of your portfolio, because the product is exceptional.
Steve Earl (32:21.166)
Yeah, love it, Kev. So if somebody, you know, we're wanting to get more details or like figure out what does a game plan look like in terms of like, you know, a 10 year projection, you know, on a property like this, where can they go to get more information? Like what's the process right now, Kev?
Kevin Clayson (32:37.738)
Yeah, like always, just email me, kevinatdfy-realestate.com. I'd be happy to show you some property analyses of midterm rentals so you can see what those look like. Watch the newsletter. The newsletter this week, we're gonna feature another midterm rental. We're gonna talk a little bit more about the midterm rental product, so take a look, watch out for that. But always, you know, request a call or schedule with me. We could jump on, we could talk about it. I'll even pull up a website.
and show you one of the midterm rentals that I own. So you could see like not just pie in the sky or I could show you some of the midterm rentals that Steve owns. So you can see, we can talk from experience and say, look, this is what's really happening. This is what the property looks like. This is the way it's performing for me. We're happy to have that conversation and to share that with you, but just reach out to me, kevin at dfy-realestate.com or go onto the website, request a call, schedule with me and let's chat. And then let's just look at whether or not this is a good fit for you.
what the potential of it might be and we'll rock and roll. It's such a beautiful product in a perfectly timed situation. The market needs a product like this and we've got it and we're one of a very small handful of people that have it. we may, our MTR, with our midterm rental team, we may be standing in a class where not a lot of other people occupy that space. And so it is exclusive, it is powerful, it is incredible.
It gives you everything that you want and we'd love to share it with you and see if it's a good fit for you.
Steve Earl (34:04.11)
Awesome. No, I love it, Kev. That's a great conclusion to this opportunity. And I think one of the best words that you used, or two words, was unique and exclusive. Because there really is nobody else doing this the way that we are doing it, with the premium everything. so, man.
I would encourage anybody out there who just wants to learn a little bit more or take next steps. If you've been hearing about this, learning about it, if you've attended one of the webinars that we've had over the years on it, we are finally opening this up from, we feel like we're finally at that point where we can be more public about it. We have the infrastructure in place now to accommodate slightly higher volume.
our MTR team has their systems and processes really dialed in. And so we're excited to have more of you come and participate and take advantage of this very unique way to invest in real estate. It's a fantastic strategy.
Kevin Clayson (35:16.33)
Awesome, thank you, Steve. Thank you everybody for listening. If you wanna know more about MTRs or midterm rentals, give me an email, kevinatdfy-realestate.com. Let's jump on a call. Happy to share everything I can with you. As always, please go rate and review the podcast. It helps us out a lot. We appreciate you guys listening and we'll see you next week.
Steve Earl (35:32.559)
Thanks for listening.