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: 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.

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: Income property can have very stable, respectful and reliable tenants.

Yes, that’s correct!  It all depends on product, location and first rate tenant screening.  If you don’t have all three, your vacancy rate will be elevated.  Let’s talk about product first.  We recommend to our students that they furnish their properties with clean serviceable items, new linens and art work on the walls.  What you are creating is an environment that is very agreeable to the tenant, one that not only the tenant will look forward to coming home to, but also one, through pictures on flyers, web sites and word of mouth, will draw new inquires.  We are all for building and keeping a pipeline.

Many furnished rooms for rent are not clean and be full of old, thread bear chairs, sofas, and soiled mattresses.  Would you want to stay any longer than you had to in a place that does not support a good sense of self-esteem?  Nicely furnished rooms generate good paying tenants, who stay for long periods.

Our preferred tenant populations  normally do not have their own transportation so proximity to public transportation is necessity.

Key to this equation within our system is good tenant screening, which strangely enough does not include credit or traditional background checks.  Our tenants are referred to us, so we gain knowledge about them and their history though direct questioning of people who are familiar with each possible tenant individually.  We discover personal background information and work experience.  This type of screening done methodically will produce good paying renters who stay for long periods creating a stable house.

To discover more about setting up transitional housing, please download our free Ebook from the right side bar.

Max Cash Flow Now: Don’t let your rental property become a charity shelter.

I just read a blog by Donna in NM, who has had the most dreadful experience with a Section 8 tenant. She wrote that she did not have Section 8 housing experience and her tenant had 10 years of experience scamming the system. No rent has been collected and now she has a squatter and is unsure how to correct the situation. Several good remedies were written in response to her questions and I don’t want to repeat her options here. I can not imagine that this is an isolated case. Probably not your specific circumstances, but even so, many real estate investors, who are holding rental property are making costly mistakes.

Depressed real estate prices and the profusion of very good deals on distressed properties are drawing many new investors into real estate. The smart ones look for coaching or mentoring from others more experienced. The majority most likely feel they can figure most things out for themselves, and then there are areas that they are inexperienced in and can have a harmful effect on their net monthly income. Getting good counseling can save money and headaches.

With our method and transitional housing, our landlords and I have never had these troubles. If the rent is overdue by more than 3 days, I just make a phone call or two, change the locks and wait for the tenant’s family member or friend to set up a time to pick up any personal belongings. I do not return their damage deposit. Within a few hours or a few days, I have the room occupied by another tenant from my waiting list.

It’s just that simple. It doesn’t involve an expensive eviction process and a minimum to no loss of rent. Squatters are absolutely unheard of, there are no legal fees, no court fees, and no fee made to local law enforcement.

Discover how I can get away with this by downloading our FREE Ebook from the side bar.

Max Cash Flow Now: Property Management of income property done differently with transitional housing.

Some of our students have found unique ways to reduce the time needed to manage transitional housing.  Transitional housing is defined by renting out individual furnished rooms in a single family or multi-family dwelling to those persons who are in transition. We are not referring to migratory workers or students, but to an additional vastly underserved tenant population. (Download free Ebook on side bar at our main blog site to learn the tenant population we’re talking referring to).

All tenants share common areas like kitchen, dining room, living room, laundry conveniences; and both private and semi-private bedrooms are “let” on a weekly or monthly basis.  The income benefit for creating this type of rental dwelling is extraordinary.  A large master bedroom could generate $750 per month rented as a semi-private (two beds) room; smaller private rooms could rent for $450 a month.  Take any rental unit you own and add it up.  I think you will quickly discover that you have effectively doubled the gross rent you could be collecting for the unit.

The model is for our real estate investments to provide us with passive income, right?  But how passive is it really?  If you are an veteran rental property owner, you either do the property management yourself, to maximize your net rental income, or you hire it out to a property management company.  You pay them to advertise, screen tenant applicants, collect rents, do credit and background checks, perform property maintenance/repairs, and handle evictions.  The cost for those services will reduce your net cash flow significantly.

Property owners doing transitional housing concern themselves with all the same issues, but in a different way.  Once the house is set up and fully occupied, the cream will come to the top.  By that, I mean a particular tenant could become your property manager.  For a small discount in their rent, they would carry out many of the same functions of a property manager.  Check in tenants, perform minor maintenance, carry out property inspections, and even handle evictions, which are a cinch with this type of housing; (see Ebook).

A virtual assistant can even deal with advertising of your property to established referral sources when you have vacancies.  All that is left is tenant screening, which does not include traditional background or credit checks.  Just a chat with one or two individuals that are informed about the candidates background.

To learn about offering alternative housing, please download our free Ebook, on the right side bar.

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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.

Outstanding cash flow for new student!


Newly opened transitional single family residence is producing outstanding cash flow for new student.

“We opened a 7 days ago, and we already have 2 renters. Both of these fellows were referred directly from the DOC and we can already tell they’re good guys who simply need a nice place to call home. The income potential on this place, even after paying the mortgage and utilities and maintenance is in excess of $1400.00 net profit per month.”

“Thanks Alf & Jeannie for talking with us initially, then educating us, and through your outstanding program. Your expertise, knowledge, experience and compassion are making a difference in peoples lives’. The benefits are not just the money, although great and needed, it is the heart that throbs and lives with excitement knowing everyone comes out a winner in using your method.”  Charlie Jackson, Sonrise Properties LLC

Here are some pictures of Charlie’s new home in Arvada Colorado.

The students we coach increase their net cash flow by as much as a thousand dollars in most cases.  Learn more about our method by download FREE Ebook, “Max Cash Flow Now” on the right sidebar.