Max Cash Flow Now

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 Profits quadrupled with great tenants.

When I blog about renting out individual rooms the usual thinking on the subject goes to a rental population of students, seniors and the mentally and physically challenged.  I say think outside the box – it’s a great time to be unconventional and observe your rental properties cash flow like never before.  As written in yesterday’s post, on average a $1,000 a month in net cash flow per dwelling unit.

Our preferred tenant will not fit into any of the above-mentioned categories.  We have found that the renters we work with – ex-offenders of soft crime – can be less of a hassle and less expensive than those most people think of when renting out individual rooms.  With anyone on parole or probation, finding a place to live is often challenging at best and forces men and women into shelters where they are apt to experience the same issues that got them into trouble in the first place.  Those who want to make a change and make their lives work are in need of clean affordable housing that reinforces their goals.

Every tenant comes in knowing that in order to take advantage of this opportunity a set of “House Rules” must be agreed to.  They are a set of living requirements handed down by most States Department of Corrections, as part of the individual’s parole or probation agreement.  They are not impossible to follow and they keep your house safe and healthy.  Who enforces them?  The individuals themselves and their parole or probation officers.  Former offenders don’t want to violate the conditions of their parole/probation requirements and if the House Rules are not being maintained there is always someone waiting to take the room.  This is just one of the reasons why this tenant population is so wonderful to have as renters.

Download our FREE Ebook on the side bar at right, to learn more about what makes these tenants some of the best renters you could ever have.

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.

Max Cash Flow Now: You’ve quadrupled your rental property income, now what?  Every business needs an exit strategy and you have three unique options, IF you’ve used our system to maximize rental income. (FREE eBook, see sidebar)

The first requires you to hold the property for at least a year to establish a believable income stream.  That’s right, I say believable because most people won’t believe the money your rental property will make for you.  You won’t be selling a normal rental unit that is rented out for market rates, you’ll be selling a system, one that generates 3 to 4 times the cash flow (net rental income) than any other home in the neighborhood.  The new buyer will pay a premium over the normal appraised value or comparable home values in the area, to acquire such a money machine.

The second exit strategy is for those who use our system and have multiple homes or dwellings.  That is selling the group of homes as a business.  Not just a real estate portfolio, but an actual business with forms, systems, and profitable track record, consequently selling the “business” for much more than the underlying real estate.

The third scenario is – a shorter version of option number one, – once you’ve acquired the property, rehabbed it, and once your property is occupied, sell to another investor that would like to carry on the same system, earning substantially more per month than a typical rental.

Again, learn how to do it at downloading our FREE eBook on the side bar to the right.

Max Cash Flow Now Tip #7: Rental property income and value are affected by how your property is kept.  Have you ever walked into one of your rental properties and gasped at the condition it was in?  You called your tenant ahead of time and made the arrangements to drop by, scheduling your visit to coincide with the renters’ job schedules and social calendars. They knew you were coming yet they gave no thought to spruce the place up or try to hide the debris of their chaotic lifestyle. After all, they have the right to use your house as they see fit because they are paying you to live there and they have a year’s lease.

Upon walking in the first thing you notice is there is not an uncluttered square foot of space to walk in or sit down.  The renter is completely unaware that you are wondering what lurks in places you can’t see.  Your mind might wander to – is the ode to Glade plug-in covering up something you need to know about?   Maybe unseen mold creeping into corners you can’t spot?  Perhaps its the smell of baked on grease wafting up from the oven over the tang of whatever is cooking for dinner – knowing that after just a few short months of this the oven will be permanently rendered useless.  Or maybe your mind goes to the craft paint spill on the carpet in the kid’s room that you have already allocated a portion of the security deposit towards?  Then there’s the bathroom that is filthy to the point you have to wonder how anyone could possibly get clean in there?  Pretty much you have to give it up.  You have no right to dictate to a tenant to pick up their garbage before going to bed to avoid an infestation of pests.  Even if you asked what are the chances of them consistently complying to your requests?  And if you did get bugs or rodents the renter pleads innocence or simply blames the neighbors and refuses to pay rent until you take care of the problem.

Of course not all renters are like this – we know that!  We don’t mean to exaggerate, but having rental properties comes with unique problems. We know there are the dream come true tenants who respect your digs and leave it whole and clean.  They are the residents we all want to keep.

To learn about our “Dream Come True” tenants, download our FREE eBook; Max Cash Flow Now, on the side bar.