Multi-Family is the way to go when considering transitional housing. Transitional housing is defined by renting out clean affordable individual furnished rooms on a weekly or monthly basis.
Max Cash Flow Now: Rental Property ROI Improved by Taking a Different Direction
Are you looking for a different direction to take your real estate rental property business? It may not be wise to sell in this market – that is if you could find a buyer for the price you need to ask – and getting market rents to cover all of your carrying costs is challenging for many property holders.
Have you run out of ideas? What if you could increase your monthly cash flow 3-4 times on your rentals holdings? Would you be interested in knowing how?
Using your rental properties as transitional or alternative housing can prove lucrative and a lot less time consuming than you initially would think. The first concern I hear from people is regarding their time. Without knowing anything about having a transitional house, they are afraid that to earn an extra (yes extra) $1000 a month – or more – they are going to have to spend equal that in time managing their transitional house.
Well forget it then – who would want to make such an absurd trade? If you knew how you could take a simple approach to this unique rental scenario and streamline the management while earning that additional $1000 or more net cash flow every month there would be little to stop the money coming your way. Is that something you could see yourself learning more about and doing?
Download our FREE Ebook, on the right side bar, and learn more about another way to get a better than average return on your rental property holdings.
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Max Cash Flow Now: New Game in Town to Increase Your Rental Properties ROI
Is what you are doing now within your real estate investment portfolio working for you? On the other hand, are you just waiting, tolerating the present circumstances? Have you noticed that the same old approaches are mostly still biding their time in a wait and see mode? How many times have you heard “I’m just waiting for the market to come back and then . . .”? Are you still loosing money on your rental property or just breaking even? The name of this game is WAIT, WAIT, & WAIT SOME MORE – and apparently, it doesn’t come with pretty girls handing out briefcases of money to the contestants.
Is your real estate business circumstance in a similar place as it was last year? The same ole’ same ole’ game can go on and on, and next year at this time, and you could still be on an identical path – not having moved forward in your financial goals. By now, everyone has heard the definition of insanity; doing the same thing over and over again and expecting different results.
THERE IS A NEW GAME IN TOWN. And, it’s called THINK DIFFERENTLY AND MAKE MONEY.
Even though the status quo is familiar, and your life is busy enough, it may be time to reevaluate your rental property situation especially if it means defining your bottom line every month with a grin rather than a grimace.
Afraid of change? Then you must be a nervous wreck trying to avoid it these days, not to mention missing opportunities at making money! You can either resist or join in and reap some of the rewards. Anxious that making a change will take too much time? Naturally, any type of new approach requires a different kind of participation at first. So I have to ask – are you making money staying in the same old approach? What if the change was painless and could increase your net rental cash flow by at least a $1000 a month, per property for about 3 additional hours a month? Would you think it worth a look? Why keep playing the waiting game with your investment portfolio? It’s time to think differently, make a change and make $$$.
Download our Ebook, “Max Cash Flow Now” and discover what we’re talking about.
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Max Cash Flow Now: Rental Property Income Affected by Neighborhood Associations
Rich bought a beautiful old fixer-upper in an neighborhood close to downtown, which was gradually evolving from a low income working class neighborhood to one that was now attracting young urban professionals. He didn’t know when he bought the property that there would be strong opposition by the area’s Neighborhood Association to using this home as a transitional house – renting individual furnished rooms to former offenders of soft crime. Rich called and asked us what we thought about turning this particular property into alternative housing.
If he went with alternative housing instead of a renting for normal market rates to a single renter, he would let 7 rooms, some private and some with two people sharing a room. He could make a net monthly profit of a little over $1,200. Nice cash flow!
While the money would be fabulous and very tempting, we told him to re-examine the strength of the Neighborhood Association.
Using our system we have never had a problem with a transitional house causing disruption in an area, but those not familiar with transitional housing aren’t always as open minded as we would like to give them credit. They hear the words alternative housing and renting to former offenders, and their imaginations run wild. Too much TV, and not enough of the facts, and Rich discovered they didn’t necessarily want the facts once their minds were locked into an opposing position.
With respect for the NA, Rich decided to use this particular property investment as a potential flip rather than as a transitional house. Why swim upstream? There are many neighborhoods that fit the requirements for good location, zoning and where the neighbors stay to themselves and appreciate others doing the same.
A primary consideration when deciding to buy or use an existing property as a T-house – stay away from HOAs, NAs, gated communities, townhomes and condos. A small and simple 3×2 in a quiet working-class neighborhood can bring you a $1,000 or more net monthly cash flow. The deals are still out there and the best are not in restricted areas.
Discover how you can maximize your rental cash flow by downloading our free Ebook on the right side bar.
Posted in Giving Back, Profitability, ROI, Tenants
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Max Cash Flow Now: Rental Property Income Increased by Maximizing Profit on Current Holdings
Many people have entered the real estate game recently, as either a hedge against questionable earnings in their stock or bond portfolios, or just to increase the return of their retirement accounts.
In some areas of the country, Denver and Indianapolis to name two, there are too many buyers chasing too few real deals, which naturally drives up prices making the “deal” aspect of the potential acquisition vanish.
Logically it should be important to discoverer whether there are ways to take full advantage of what your current holdings could produce. There are many niche areas in which to investigate that will increase rental cash flow; crash pads, student housing, rooming houses, elder homes, homes for the developmentally disabled, homes for disabled veterans etc.
Take a closer look at you property inventory. Do you know of a single family or multi-family residence that is close to good public transportation or walking distance to a convenience or grocery stores? These make excellent candidates with which to operate transitional housing. Let’s say one of the current rental properties you own is a little 3 by 2, what if it could generate $1,900 a month in gross rent? What if a 4 bedroom, in a working class neighborhood, could generate $2,700 a month in rent? Would that be worth looking into, if knowing it isn’t going to absorb all of your time to manage it?
Not only can it be done, but we and others are doing it right now, without leases and with a tenant population that will thoroughly respect your property. Check out more in by downloading our free Ebook on the right side bar, and start to think differently about how you treat your rental properties and how they treat you!
Posted in Giving Back, Profitability, ROI, Tenants
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Max Cash Flow Now: Real Estate Profits with Alternative Housing
There is a method, which increases your net monthly income or cash flow on your rental properties substantially while you’re waiting for the market to rebound. At present many property owners are holding rental property and are either in a negative cash flow position, breaking even or perhaps making a modest profit. They are waiting and holding on for the market to revive.
Waiting – why wait? Why wait with a negative or measly cash flow? It is not for everyone, but some more entrepreneurial types find creative approaches to making money in a down market. Is a return on your rental of a $1,000 a month net or $12,000 a year, worth exploring?
I’m talking about Alternative Housing; renting out individual furnished rooms to maximize a property’s FULL income potential. It does require more time up-front, but after about 3 months, with the right coaching, this approach actually has the potential to become more of a passive income source. That will depend on your ability to listen to other creative minds!
How do you find tenants who are not students, the elderly, handicapped or Section 8 who will agree to rent a private or semi-private bedroom? There are many sources, all of whom work to find affordable housing for their clients. All you need to do is let them know what you are offering and the referrals will be steady and constant.
Many individuals have skills and jobs, but just cannot raise the necessary funds to cover rent on their own. They could however cover a shared rent with the privacy of their own room and communal living spaces like kitchen, living room and laundry. You can offer a real home at a fraction of the cost to them, but 3-4 times more monthly cash flow to you!
There is a need and you can supply the answers for yourself and others. Download our free Ebook, on the right side bar, to learn more and then give us a call or email so we can share additional insights about an opportunity that is perfect for the times.
Posted in Marketing, Profitability, ROI, Tenants
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Transitional housing may appear simple to figure out, and it is not rocket science, but there are caveats to every unique business venture. Don’t confuse learning something new with unusual time commitments or more work, but with simply knowing how to use tried and true choices. Why re-create the wheel? Get the job done efficiently the first time around instead of on a live and learn basis.
Another person we coached who has decided to have transitional housing has a triplex that he was getting the usual market rents. One unit was a 1 bedroom, another unit was a 2 bedroom unit and the last one was a four bedroom. He was grossing $1,975 with normal rents, but now doing transitional housing, he grosses $3,140. Can you say — sweet?
Why check out at this option? Profit is the answer. $450 a month for a private room, $750 a month for a semi-private room adds up quickly. How many bedrooms does your rental have? How many are at least 144 sq. ft. that can be made into semi-private bedrooms? Then there are family rooms and porches that could be converted into an additional bedroom? Use a calculator and add it up. You will be amazed to find that in most cases you could be earning at least $1,000 a month in NET INCOME. With the particular tenant population we rent to, we never run out of tenant applicants and our students are looking for more residences to buy to fill with an on-going stream of tenants.