Travel Nurse Real Estate Investing: Build Wealth Between Assignments

Introduction: Why Real Estate Is a Natural Fit for Travel Nurses

Travel nurses have an unusual financial profile that most real estate investors would envy. You earn above-average income. A significant portion of that income is tax-free. You are already comfortable with temporary living situations. And you visit cities across the country, giving you firsthand knowledge of housing markets that most out-of-state investors only see on Zillow.

Yet most travel nurses never seriously consider real estate investing. The assumption is that you cannot buy property when you move every 13 weeks. That assumption is wrong. Travel nurses buy rental properties, house hack duplexes, execute BRRRR strategies, and build real estate portfolios — all while working assignments hundreds or thousands of miles from their investments.

The key is understanding how the travel nursing pay structure interacts with mortgage qualification, how rental income is taxed alongside your stipends, and how to manage properties when you are not around to fix a leaking faucet yourself. This guide covers all of it.

This is educational content, not financial or legal advice. Consult with a qualified CPA, real estate attorney, and mortgage professional before making real estate investment decisions.

How Travel Nurse Income Affects Mortgage Qualification

The first question every travel nurse asks about real estate is: “Can I even get a mortgage?” The answer is yes, but the process is different from what a staff nurse experiences.

The Challenge: Variable Income and Unusual Pay Stubs

Mortgage lenders like stability. They want to see a consistent salary from a single employer, ideally for two or more years. Travel nurses have the opposite: multiple employers, 13-week contracts, variable pay rates, and income that appears on pay stubs in an unfamiliar format with stipends, per diems, and reimbursements.

This does not disqualify you, but it does mean you need to work with a lender who understands travel nursing income. Many travel nurses have been turned down by lenders who simply did not know how to document their earnings, not because they could not afford the mortgage.

What Lenders Need From You

To get approved, prepare the following:

Two years of tax returns (Form 1040 with all schedules). Lenders average your last two years of income. If you are newer to travel nursing, having at least one full year of returns showing travel nurse income helps significantly.
W-2s from the past two years. You may have W-2s from multiple agencies. Organize them all.
Recent pay stubs showing your current contract rate.
Employment verification letters from your current agency and ideally one or two previous agencies confirming your history of continuous employment.
Bank statements showing consistent deposits.

The Stipend Problem

Here is a critical issue that trips up many travel nurses: tax-free stipends do not appear on your W-2, so lenders cannot use them to calculate qualifying income. Your W-2 only shows your taxable wages, which may be significantly lower than your total compensation.

For example, a travel nurse earning $2,800 per week total might have a W-2 showing only $60,000 in taxable wages, even though their total annual compensation is $95,000 or more. That $60,000 W-2 limits how much mortgage you can qualify for.

Workarounds:

Some lenders will consider bank statement deposits as supplementary income documentation, which captures your full compensation.
Non-QM (non-qualified mortgage) lenders specialize in borrowers with non-traditional income and may offer bank statement loans that qualify you based on actual deposits rather than W-2 income alone. These may carry slightly higher interest rates.
Building a strong down payment (20% or more) and maintaining excellent credit (740+) can offset the income documentation challenges. Our credit score guide covers how to optimize your score.
Working with a mortgage broker rather than a single bank gives you access to multiple lenders with different qualification criteria.

Where to Buy

Your tax home address is typically the best location for your first investment property. Buying near your tax home strengthens your tax home claim by demonstrating substantial ties to the area. It also means you can physically check on the property between assignments and potentially live in it during gaps.

House Hacking: The Best First Move for Travel Nurses

House hacking means buying a small multi-unit property (duplex, triplex, or fourplex), living in one unit, and renting out the others. It is widely considered the best entry point into real estate investing, and it is particularly well-suited to travel nursing.

How It Works

Buy a duplex or triplex near your tax home using an owner-occupied loan (FHA with 3.5% down or conventional with 5% down).
Live in one unit during gaps between assignments. This satisfies the owner-occupancy requirement and strengthens your tax home.
Rent out the other unit(s) to tenants who cover most or all of your mortgage payment.
When you are on assignment, your property generates rental income while your housing stipend covers your temporary housing at your assignment location.

Why It Is Perfect for Travel Nurses

Strengthens your tax home. Owning property at your tax home address is one of the strongest factors the IRS considers when evaluating your tax home status. You have a mortgage, utilities, and property taxes in the area — all evidence of duplicated living expenses. This protects your ability to receive tax-free stipends.

Low down payment. Owner-occupied loans require far less money down than investment property loans. An FHA loan on a $250,000 duplex requires only $8,750 down. An investment property loan would require $50,000 or more.

Rental income offsets your tax home costs. Many travel nurses consider their tax home expenses (rent, utilities) as the “cost of doing business.” With a house hack, tenants in the other unit(s) pay most or all of those costs, effectively making your tax home free.

Built-in property management during absences. Having tenants next door means someone is at the property while you are away. This is not a substitute for a property manager, but it provides an extra set of eyes on the building.

The Numbers: A House Hack Example

Property: Duplex purchased for $275,000
Down payment (FHA, 3.5%): $9,625
Monthly mortgage (including taxes, insurance, PMI): $2,100
Rent from second unit: $1,400/month
Your effective housing cost: $700/month
Annual tax home cost (your unit): $8,400

Compare that to renting an apartment at your tax home for $1,200/month ($14,400/year) with no equity building and no rental income. The house hack saves you $6,000 per year while building equity and generating rental income when both units are rented during your assignments.

The BRRRR Strategy for Travel Nurses

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It is a wealth-building strategy that allows you to recycle your initial capital into multiple properties.

How BRRRR Works

Buy a below-market-value property that needs work (foreclosure, estate sale, distressed property).
Rehab the property to increase its value. This could be cosmetic updates (paint, flooring, fixtures) or more significant renovations (kitchen, bathroom, roof).
Rent the property to a tenant at market rate.
Refinance the property based on its new, higher appraised value. Pull out your initial investment (or close to it) as cash.
Repeat the process with the recovered capital.

Travel Nurse Considerations

Timing rehab during gaps. Some travel nurses time their property purchases and renovations for the gaps between assignments. A two to four week gap is enough to manage a cosmetic rehab if you have contractors lined up in advance.

Hiring contractors remotely. For larger rehab projects, you will need reliable contractors who can work while you are on assignment. Building a relationship with a general contractor at your tax home location is essential. Get referrals from local real estate investor groups, not just Google reviews.

Funding BRRRR deals. Travel nurses can fund BRRRR deals through:

Cash savings (tax-free stipends accelerate your ability to accumulate capital)
Hard money loans (short-term, high-interest loans secured by the property, paid off at refinance)
Home equity lines of credit (HELOC) on your primary residence
Partnership with another investor

The risk factor. BRRRR is not passive. It requires significant knowledge, time, and risk tolerance. Renovation costs overrun. Appraisals come in lower than expected. Tenants cause damage. If you are new to real estate, start with a straightforward house hack before attempting BRRRR.

Tax Implications: Rental Income Plus Travel Nurse Stipends

The intersection of rental property income and travel nurse pay creates a unique tax situation. Understanding it is essential before you buy.

Rental Income Taxation

Rental income is reported on Schedule E of your tax return. You can deduct operating expenses (property management fees, repairs, insurance, property taxes, mortgage interest, advertising, and travel to the property) from your rental income. You also take depreciation on the building (not the land), which is a non-cash deduction that reduces your taxable rental income.

Many rental properties show a tax loss on paper even though they generate positive cash flow, because depreciation creates a deduction without an actual expense. This is one of the most powerful tax advantages of real estate investing.

How Rental Income Interacts With Your Travel Nurse Income

Your rental income (or loss) is reported separately from your W-2 travel nurse income. However, there are important interactions:

Passive activity loss rules. Rental activities are generally considered passive, meaning losses can only offset other passive income. However, if your modified adjusted gross income is below $100,000, you can deduct up to $25,000 in rental losses against your active income (which includes your travel nurse wages). This deduction phases out between $100,000 and $150,000 MAGI.

For travel nurses, your MAGI is based on your taxable wages, not your total compensation including stipends. This means your MAGI may be low enough to qualify for the full $25,000 deduction even though your actual income is higher. This is a significant tax advantage.

Real Estate Professional Status (REPS). If you spend 750+ hours per year on real estate activities and more time on real estate than your nursing career, you can qualify as a Real Estate Professional. This allows you to deduct unlimited rental losses against your active income. However, this is extremely difficult for a full-time travel nurse to achieve. It is more relevant if you reach a point where you reduce your nursing hours significantly.

Stipends and Rental Property

Your tax-free stipends are not affected by owning rental property. Stipend eligibility depends on your tax home status, and owning rental property at your tax home actually strengthens your tax home claim. The two work together, not against each other.

However, be careful about claiming overlapping housing deductions. You cannot deduct housing expenses at your tax home as a travel expense if those expenses are already being covered by rental income or claimed as rental deductions on Schedule E. Your CPA should coordinate these deductions. Our CPA guide can help you find a tax professional who understands both travel nursing and real estate.

Property Management While Traveling

This is the practical challenge that keeps many travel nurses from investing in real estate. You are 1,500 miles away and a tenant calls at 2 AM about a burst pipe. How do you handle it?

Hire a Property Manager

For most travel nurse landlords, a property manager is not optional — it is essential. A property management company handles tenant screening, rent collection, maintenance coordination, lease enforcement, and emergency repairs.

Cost: Typically 8-12% of monthly rent plus a leasing fee (50-100% of one month’s rent) when placing a new tenant. On a property renting for $1,500/month, expect to pay $120 to $180/month for management.

What to look for:

Experience managing properties for out-of-state owners
Online portal for financial reporting and maintenance requests
Clear communication about maintenance thresholds (what they fix without calling you and at what dollar amount they need approval)
Positive reviews from other landlords, not just tenants
Transparent fee structure with no hidden charges

Self-Management With Systems

Some travel nurses manage their own properties remotely using technology and systems:

Rent collection: Online platforms like Avail, Buildium, or Apartments.com automate rent collection, late fee assessment, and deposit management.
Maintenance requests: Tenants submit requests through an app, and you dispatch your pre-vetted local handyman or contractor.
Emergency contacts: Maintain a list of reliable local contractors (plumber, electrician, HVAC tech, general handyman) who can respond to emergencies. Pay a premium for 24-hour service availability.
Regular inspections: Schedule quarterly inspections (or have a trusted local contact do them) to catch problems early.

Self-management saves money but requires more of your time and mental energy. It works best when you have a reliable tenant and a property in good condition.

The Hybrid Approach

Many travel nurse investors use a hybrid model: self-manage when they are local between assignments and hire a property manager during contracts. This reduces management costs while ensuring someone is handling issues when you are away.

Building a Real Estate Portfolio on Travel Nurse Income

Start Small and Scale

Your first property should be low-risk: a house hack duplex in a stable market near your tax home. Learn the landlording basics, make your mistakes on a small scale, and build your confidence and cash reserves before buying more.

A realistic timeline for a travel nurse building a real estate portfolio:

Year 1-2: Buy your first house hack duplex. Learn landlording. Stabilize the property.
Year 3-4: Buy a second property (single-family rental or small multi-unit) using savings from your travel nurse income and equity from your first property.
Year 5-7: Continue adding one property every 12-18 months as cash flow and financing allow.
Year 8-10: Your portfolio generates enough passive income to significantly supplement or replace your nursing income.

Financing Multiple Properties

Conventional lenders typically allow up to 10 financed properties per borrower. Each investment property (beyond your primary residence) usually requires 20-25% down and a higher interest rate than owner-occupied loans.

As you scale, explore:

Portfolio lenders (local banks and credit unions) who hold loans in-house and may be more flexible with qualification requirements
DSCR loans (Debt Service Coverage Ratio) that qualify based on the property’s rental income rather than your personal income — particularly useful for travel nurses whose W-2 income does not reflect their full earning power
Seller financing where the property seller acts as the lender, often with more flexible terms
Partnerships with other investors who bring capital while you bring deal-finding and management expertise

Using Travel Nursing Income to Accelerate Real Estate Investing

The combination of high income and tax-free stipends makes travel nursing an ideal career for accumulating real estate capital. Here is how to optimize:

Save 20-25% down payments faster by banking your stipends. See our budget guide for strategies.
Use assignments in your target market to scout properties, meet contractors, and network with local real estate investors.
Time property purchases during gaps between assignments when you can handle inspections, closings, and initial setup in person.
Build reserves for each property (typically three to six months of expenses per property) in a high-yield savings account.

Common Mistakes Travel Nurse Real Estate Investors Make

Buying too far from your tax home. Your first property should be near your tax home so it strengthens your tax home claim and is accessible between assignments. Out-of-state investing is possible but adds complexity that is better handled after you have some experience.

Underestimating expenses. New landlords focus on the mortgage payment and forget about vacancy (budget 5-8% of annual rent), maintenance (budget 10-15%), capital expenditures like roof replacement or HVAC (budget 5-10%), property management, insurance, and property taxes. If the numbers only work when the property is 100% occupied and nothing breaks, the numbers do not work.

Skipping the property manager. Managing a property from 1,500 miles away without professional help leads to neglected maintenance, problem tenants, and enormous stress. Budget for a property manager from day one.

Not understanding the tax implications. Rental property taxes are complex, especially when combined with travel nurse stipend income. Work with a CPA who understands both. Filing incorrectly can cost you far more than the CPA’s fee.

Overleveraging. Taking on too much debt too quickly is dangerous. One bad tenant, one major repair, and one contract cancellation happening simultaneously can create a financial crisis if you do not have adequate reserves.

Key Takeaways

Travel nurses can absolutely qualify for mortgages, but need to work with lenders experienced in non-traditional income documentation
Tax-free stipends do not appear on your W-2, which may limit your qualifying income — compensate with larger down payments or non-QM lending options
House hacking a duplex near your tax home is the ideal first real estate investment for travel nurses because it strengthens your tax home claim, reduces living costs, and builds equity
Rental income and travel nurse stipends interact in ways that can be tax-advantageous, but require a knowledgeable CPA to navigate properly
Property management is essential for travel nurses who are away on assignment — budget 8-12% of monthly rent for this service
Start with one property, learn the fundamentals, then scale gradually using your travel nurse income to accelerate down payment savings

Frequently Asked Questions

Can I qualify for a mortgage as a travel nurse?

Yes. You will need two years of tax returns, W-2s from all agencies, recent pay stubs, and employment verification letters. Work with a lender or mortgage broker who has experience with travel nurse borrowers. Your biggest challenge will be that tax-free stipends do not appear on your W-2, which may reduce your qualifying income.

Should I buy rental property near my tax home?

For your first investment property, yes. Buying near your tax home strengthens your IRS tax home claim, allows you to check on the property between assignments, and makes initial landlording easier. Once you have experience, expanding to other markets is reasonable with a property manager in place.

How does rental income affect my travel nurse stipends?

Rental income does not affect your eligibility for tax-free stipends. In fact, owning property at your tax home strengthens your tax home status. However, you need to ensure your tax deductions are coordinated properly between your rental property Schedule E and your travel nursing expenses. Work with a CPA who understands both.

How much money do I need to start investing in real estate?

With an FHA loan on an owner-occupied property (house hack), you can start with as little as 3.5% down. On a $250,000 duplex, that is approximately $8,750 plus closing costs (typically 2-5% of the purchase price). For a non-owner-occupied investment property, expect to need 20-25% down. Factor in three to six months of reserves for the property as well.

Is it worth hiring a property manager as a travel nurse?

For most travel nurses, absolutely. The cost (8-12% of monthly rent) is a legitimate business expense that is tax-deductible and saves you from trying to coordinate repairs and tenant issues from hundreds of miles away. The peace of mind alone is worth the cost, and it allows you to focus on your nursing career without landlording stress.

Affiliate Placement Notes: Mortgage lender referral links in the qualification section. Property management software recommendations in the management section. Real estate investing course or book referral in the BRRRR and portfolio building sections. Financial advisor or CPA matching service in the tax implications section.