The Midterm Rental Revolution: How One Portland Investor Found the Sweet Spot Between Long and Short-Term Strategies

Written by:

Steve Marcinuk

Date:

31 Jul 2025

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The rental property landscape has long been dominated by two primary models: traditional long-term leases and the more recent short-term vacation rental boom. However, a growing number of investors are discovering a third option that combines the stability of longer stays with the premium pricing of furnished accommodations. This midterm rental strategy, targeting stays of 30 days to six months, is gaining traction among investors seeking higher cash flow without the operational intensity of nightly turnovers.

Shona Lepis, Founder and Host of She’s Got Assets and a Portland-based real estate investor, has built her portfolio around this emerging niche. Her journey from accidental house hacker to what some call “the midterm queen of Portland” illustrates how investors can find opportunity in the spaces between traditional rental models.

From Roommate to Real Estate Portfolio

Lepis’s entry into real estate investing began with necessity rather than strategy. Growing up in Northern California’s expensive Mendocino market, where ” a million dollars was entry level,”real estate seemed unattainable. A move to Portland after a significant life change revealed new possibilities.

“Real estate was under 200k at the time,” Lepis recalls of her early Portland days. “I bought my first house and had a roommate. I didn’t call it house hacking then, it was just having a roommate.” That first property generated $40,000 in equity within a year, a revelation that sparked her interest in real estate as a wealth-building vehicle.

The path from single property owner to portfolio investor followed a familiar trajectory: leveraging equity through HELOCs, reinvesting in additional properties, and gradually building a rental portfolio. However, Lepis initially kept her investing activities private. “Housing is a very hot button issue, and I was very proud about being an investor. I thought people would hate me, especially in the Portland market.”

Discovering the Midterm Sweet Spot

After exploring various strategies, including traditional and short-term rentals, Lepis found her niche in the midterm space. The appeal became clear through direct experience with different rental models.

“Long term is great, but cash flow is like, you’re lucky if you get $200 a door,” she explains. “Short term can be highly lucrative, but you have turnover every two to three nights. You have very high maintenance guests…even with software and AI…it is a lot of hands-on work.”

Midterm rentals, by contrast, offer what Lepis describes as “the sweet spot where it’s 30 plus days, typically three to six months.” This model targets a demographic often overlooked by traditional rental strategies: people in temporary housing situations who need furnished, flexible accommodations.

The Economics of Midterm Rentals

According to Lepis, midterm properties typically generate “two to three times long-term rent.” She offers: “A five-bedroom, three-bath that might go for $3,500 to $4,000 a month long-term could command $10,000 monthly as a midterm rental.”

This premium pricing reflects several factors. Guests pay for flexibility, furnished accommodations, included utilities, and lease terms traditional landlords rarely offer. “We’re taking on a bit of risk with shorter lease terms, and we’re offering a fully valuable service. A lot of landlords don’t understand this market, it’s hard to find a landlord that’s even open to this kind of scenario.”

The target demographic extends beyond traveling nurses. Lepis highlights a lucrative niche: families displaced by home repairs or insurance claims. “I talk to families all the time where their dishwasher leaked or their toilet ran, and their floors are destroyed. They need temporary housing for a few months, and insurance kicks in and pays their rent.”

Operational Considerations and Risk Management

Midterm rentals offer higher returns but require different operational approaches. Properties must be fully furnished, though not to the luxury standards of short-term vacation rentals. “It’s more home away from home,” Lepis notes. “It needs to be comfortable, well-designed, nice, but it’s not like you need a hot tub and a cold plunge and pickleball court.”

Furnishing costs typically run $10 to $15 per square foot, though budget-conscious investors can reduce these expenses. The investment in furnishings pays off through reduced wear and tear compared to vacation rentals. “Things typically don’t walk off like with short terms, and the wear and tear is much less. These are people working, not vacationing.”

While short-term rentals can experience significant vacancy during off-seasons, and long-term rentals offer stable but lower returns, midterm rentals require careful market analysis. Lepis recommends underwriting with 20% vacancy to remain conservative, though her actual experience shows higher occupancy rates.

For investors concerned about vacancy gaps, she suggests a hybrid approach: “You can fill in your gaps with short-term stays. You’re putting up two listings on Airbnb, one optimized for short-term, one for midterm. If you have a two-week gap, fill it with a short-term stay while focusing on midterm bookings.”

Market Requirements and Scalability

The midterm rental model isn’t universally applicable across all markets. Success requires specific market characteristics that support demand for temporary housing. “You want to be in a pretty urban place with industry and commerce and hospitals,” Lepis explains. “I don’t think a small town or rural area will work, you need less displaced families, fewer traveling nurses.”

Within appropriate markets, the strategy scales across different property types. Lepis works with students nationwide who operate everything from studios to large single-family homes. “If you have a studio, you can charge extra rent, and it’s great. Larger properties like four or five bedrooms with fenced yards are harder to find, so you can command higher rent.”

The key is understanding the specific demographic each property type attracts. Families dealing with insurance claims typically need three-bedroom, two-bathroom homes, while traveling professionals might prefer smaller, well-appointed units with workspace areas.

Marketing and Tenant Acquisition

Success in midterm rentals requires marketing approaches that differ from traditional rental advertising. Lepis teaches students to market properties before they’re fully furnished, using virtual staging during the setup phase.

“Students that take my advice virtually stage properties that aren’t furnished yet,” she explains. “They’re very upfront about it, but it works. I’ve had students get properties booked while still remodeling, without a lick of furniture in there.”

This approach provides immediate income validation while testing market pricing and demand. It also allows investors to refine their target demographic and adjust furnishing strategy based on inquiries.

Building relationships with corporate housing companies and developing B2B partnerships can improve occupancy rates. Rather than relying solely on individual bookings through platforms like Airbnb, successful midterm operators cultivate relationships with companies that regularly need temporary housing for employees, contractors, or clients.

Female Investor Empowerment and Education

Beyond her investment activities, Lepis has built an educational platform to empower other investors, particularly women, to succeed in real estate. Her coaching business, She’s Got Assets, addresses what she sees as a gender gap in real estate investing education and networking.

“When you go to an REI event, it’s a lot of males. You don’t see a lot of females, and it can be a little bit intimidating,” she observes. Her programs combine midterm rental education with broader real estate strategies, including off-market property acquisition and owner financing techniques.

The educational component reflects a broader trend in real estate investing: successful practitioners building coaching and education businesses around their expertise. This diversification provides additional income streams while scaling knowledge and strategies across markets.

Market Implications and Future Outlook

The growth of midterm rentals reflects broader changes in how people live and work. Remote work flexibility, increased mobility, and changing life circumstances create ongoing demand for housing solutions that fall between traditional hotel stays and annual leases.

For real estate investors, the midterm model offers a way to achieve higher cash flow in markets where traditional rental strategies struggle with current interest rates and property values. “In this market with the rates, it’s very hard to make something cash flow with long-term rentals,” Lepis notes. “You can make a single family cash flow like nothing else with this model.”

The strategy also addresses a genuine market need, providing quality temporary housing for people in transition. Whether serving families displaced by home repairs, professionals on extended assignments, or individuals relocating for work, midterm rentals fill a gap in the housing market that traditional hotels and long-term rentals don’t adequately serve.

As more investors discover this niche, competition will likely increase, but the fundamental demand drivers, job mobility, home repairs, temporary relocations, suggest continued opportunity for well-positioned operators. Success will increasingly depend on operational excellence, market knowledge, and the ability to provide genuine value to tenants seeking temporary housing solutions.

For investors willing to learn the nuances of this emerging market, midterm rentals represent an opportunity to achieve higher returns while serving a legitimate market need. As Lepis puts it: “We’re providing a service of a really comfortable home away from home for a temporary stay that’s pet-friendly and flexible in ways that hotels and traditional rentals just can’t match.”