Max Cash Flow Now

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.

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!

Max Cash Flow Now: Rental Property Cash Flow Increased – Providing Transitional Housing Gaining in Popularity

Converting a conventional rental into alternative housing can be quick and simple.  We have created a method that keeps conversion costs to a minimum.  Most multi-family and many single family residences (SFR’s) can be transformed into a much more profitable venture.  One important point is to make sure you check with your local zoning authority first.  You will want to find out how many un-related individuals are permitted per unit, within your property’s particular zoning district.

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.

One in 6 Americans knows somebody or have themselves served time for a crime – That’s a heck of a statistic.  Many of those imprisoned are serving time specifically for a “soft” crime. Soft crime, while still an offense is defined as a crime that is non-violent or not against a person.  When that person is released and working to get on with their lives, they require reasonably priced housing that supports their hard work. We rent to fellows who are released from half-way houses or work release programs.  These individuals have served their time, have jobs and need to find affordable lodging.  The stereotypical idea that all former offenders are thugs just is not true anymore.

As a result, many questions remain.  All of these questions are answered in our FREE Ebook that can be downloaded by inserting your email address in the box on the right sidebar.  Come on – the times call for thinking about making money in new and different ways!

Max Cash Flow Now: Rental Property Cash Flow Wizards meetup.

A group of alternative housing landlords got together recently at a local neighborhood bar to discuss a range of common concerns.  They were anxious to re-confirm a collaborative coalition rather than a competitive one.  There is such a need for this type of work and everyone brought important questions and answers to the get together.  The group was made up of of experienced property owners and others that were just opening up.

It was a great sharing of ideas, solutions, and experience.  Things discussed were; the state’s early release program, vouchers to property owners that pay for up to two months rent, newly discovered tenant referral sources, a free bicycle program, and a group marketing initiative.

Everyone is doing so well.  One property owner commented that even with 2 out of 7 beds opened for a while, she was still making great cash flow on her property.  Presently with a little attention given to her referral sources, she has filled the 2 beds and has 2 guys waiting in the “pipeline.”  The experienced landlords all agreed that it doesn’t take much once a house is established to keep it full and they were all loving the income their properties generated every month.

If you’re a first time reader of this blog post, it’s important to appreciate that these property owners are renting individual furnished rooms to a definite tenant population thus creating great rental property income – on the average of $1000 a month NET.

Learn more about transitional housing by downloading our FREE Ebook by inserting your email address on the right side bar.  And feel free to contact us anytime with questions.

Building ROI on your investment properties.

Max Cash Flow Now: Be a leader in your area by building ROI on investment properties.  A reader of this blog wondered why, “if this (our method) was such a good idea, why wasn’t anyone else doing it.”

We understood his concern and we can only respond with what we know to be true in our overwhelmingly successful Denver market.  This area is booming with transitional housing in all types of neighborhoods throughout the city and surrounding counties.

Presently when someone from this region calls us for information on opening a transitional house, we mildly discourage them.  That might not sound like good business on our part, but due to the number of investors who have witnessed this niche come alive and thrive over the past 18 months, we are approaching a saturation point.

It took about 12 months for the looky-loos to stand back and watch and collect information before they ventured into this lucrative opportunity.  Therefore, I really do understand the concern about being the first one to take a new path.  Consider though what those looky-loos lost in cash flow, property repair costs, bad tenants and evictions until they finally started thinking out of the box and work with a now proven system.

When we started, the local area boasted 12 beds in alternative housing.  With our very first house we brought the total up to 17.  We are now responsible for 64 beds.  There are other companies and individuals who have turned their rentals into transitional housing and we don’t have an exact count on them, but suffice it to say when the word gets out that something good is happening it doesn’t take long for others to jump on board.

It is an idea of the times, but few people have even thought about the need that is out there.  It boils down to a lack of awareness and education.  One in 6 people in the US has been or knows of someone who has been incarcerated.  We as a nation have the highest incarceration rate in the world.  Are they all bad guys?  When we think of men coming out of prison we think of gangstas and thugs, but often the crime is “soft” and the guy was in the wrong place at the wrong time hanging with the wrong people.  We teach our students how to screen applicants who are desperate to make their lives right again and not make the same stupid mistakes that got them into prison in the first place.  But really – who thinks of them – has the idea ever been brought up in a Real Estate Investment Association (REIA) meeting?  No – because it just has not yet been thought of, investigated and worked as a viable investment strategy in your area.

When we first started in this work we stood in front of a group of 220 investors and several wide-eyed individuals thought we were nuts!  However, we were bombarded with questions from every angle imaginable.  Denver has a pretty savvy investment climate yet no one had ever thought about this approach to increasing their cash flow and now as I said earlier the local area is saturated with transitional house landlords.

Find out if this concept is right for you.  Download our free Ebook, “Max Cash Flow Now,” on the right sidebar.

Pic’s of Transtional Housing

Max Cash Flow Now: Build ROI with investment property through transitional housing.

We write a lot about increasing rental income 3 to 4 times by renting out individual furnished rooms.  But, what does a furnished transitional home look like?  Here are some interior pictures of some of our student’s homes.

Commen Area

Private Room

Dining Area

Kitchen

Private Rm

Semi-Private

Each home has been furnished with reconditioned, used or gifted furniture, fixtures and appliances at very reasonable costs, normally in the range of a one time cost of $400 to $600 per bed.  A schedule to repay yourself for this investment in furnishings either can be very short, or over an extended period of time depending on the advice of your accountant.

Our philosophy is to provide a warm, clean, comfortable environment that fosters a growing sense of self-esteem, which is so important for individuals seeking employment or struggling with getting their life back on track.

Be the difference in someone else’s life and at the same time prosper financially.  Read our free Ebook, which can be downloaded on the side bar to the right of this post.

Max Cash Flow Now: Rental property cash flow can be thought of in different ways.  It’s that time if year when most of us are thinking of what we can give, what we can bring, what we can share.  Our daily blog however is mostly centered around receiving.  Receiving is, without question a good thing, but it is at the Holidays that so much of our focus shifts to giving.

Business shouldn’t be only about what we can get out of it – ideally there must be a mutual exchange of goods or services in which all parties experience value for a healthy balance to exist.  Many of our students take up our program for the sole purpose of what is it they can receive. No problem, after all business is based on smart decisions regarding how to make the most of a good investment – so naturally we applaud their thinking.

However, our program innately carries a business balance where everyone involved receives and gives within a healthy mutual respect.  In tough times or good times, offering someone a clean, affordable place to call home is foundational to the spirit of giving.  At the same time, receiving a maximum return on an investment is ultimately the purpose of good business.

Times are changing more rapidly than we would have ever conceived possible just a few short years ago – business is not “as usual”.  In this hard economic period, doesn’t it make sense to enter a business arrangement knowing that it not only benefits you, but countless others?  Think outside the box.  Remember receiving has the additional bonus of feeling even better when you are giving back in return.

Learn about our method of giving and receiving by downloading the FREE eBook on the sidebar on the right.  Happy Holidays!