Max Cash Flow Now

Max Cash Flow Now: Quadruple Rental Income with Multi-Family

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. It’s a departure from the usual way of renting to individuals or families and there are things to know that will save you from making unnecessary and costly mistakes. (To learn more about transitional housing download our free Ebook “Max Cash Flow Now” see right side bar.) If done correctly the cash flow return on multi-family dwellings can be awesome. In addition, because you are renting to a particular tenant population you can adjusts the requirements as the property owner in ways that otherwise would be out of your control.

Consider a three bedroom one bath duplex in Denver, Colorado.  Market rents for this one unit is $850 or $1700 for both sides.  If this were transitional housing, the same duplex grosses $3,999 every month.  Would you say that this was worth looking into?

Take a smaller, 2 bedroom, 1 bath per unit fourplex.  Renting at market rates would yield $650 per unit or $2,600 for the entire structure.  Converting it to transitional housing, this exact same fourplex grosses $1,483 per unit or $5,932 for the entire fourplex.  Want to learn more?

Deduct your PITI payment, and a portion of the utilities (regarding utilities – there’s plenty of room in the deal, and it is actually to your advantage to pay.)

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?

Are you beginning to get the picture?  If you are a real estate investor who is holding or considering rental property, you really should consider this system for your real estate portfolio.  With a minimum investment, right guidance and coaching to avoid any pitfalls you can earn 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: 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.

Max Cash Flow Now: How does your rental properties cap rate compare to other income producing properties.

Since our method guarantees such a vast difference in cash flow from what is normally received from a single family and multi-family investment property we wanted to illustrate what investors in apartment houses do when they asses a deal.  They evaluate the profit potential of the property as opposed to what comparable properties recently sold for, to establish value.  Basically, how that investment is going to pay them back, similar to annual interest rate paid on an investment in a CD or Bond.  So the ratio between the sum invested and the net profit the asset produces is the cap rate.

By applying a certain criteria, someone investing in larger money producer, such as apartment buildings can determine a worthwhile investment and the same criteria can be used when looking at our system applied to your single family and smaller multi-family rentals.  A good deal for an investor in apartments is a cap rate of 10% or better.

annual net cash flow / total dollars invested in the property = Cap Rate

For illustration, if a single family residence (SFR) were acquired for $85,000 and it required $15,000 in remodel costs so the total investment would be $100,000.  Market rents for the neighborhood suggested that you could rent the property for $1,250 a month gross or $15,000 annually.  Deduct your total annual operating costs; principle, interest, taxes, insurance, property management/maintenance costs, (lets use $1,050 a month) to arrive at your net positive income.  So annualized operating costs would then be $12,600 annually, which leaves $2,400 in net annual cash flow.

$2,400 / $100,000 = 2.4% cap rate

It’s not unusual for a usual rental to cash flow $200 a month net. Naturally, the property owner is relying on the property’s ultimate market appreciation, and tax advantages, to evaluate their overall investment also.

Now apply our system, and rent the home at double market rates of $2,500.  Our suggested method does necessitate some additional operating expenses, so the monthly effective operating costs would now be $1,250 a month, thus providing $1,250 a month in net cash flow or $15,000 annually.

$15,000 / $100,000 = 15% cap rate

Now that’s much better and the envy of every apartment owner out there and you did it with a SFR.  It’s not completely passive income, it does call for some extra time, but not as much as one might think.  We teach ways to reduce management time considerably.

To learn how to increase your “Cap Rate,” download our free Ebook, Max Cash Flow Now, from the side bar.

Max Cash Flow Now: Is your real estate investment portfolio providing the maximum rental property cash flow possible?  The first of a new year is the perfect time to re-examine your current investment strategy and plot a course for the coming new year that will prove to be even more lucrative.

If you currently own rental property, or are thinking of adding rentals to your portfolio, be it single family, multi-family or even apartment buildings, we are introducing some exciting alternatives that you should consider.  Let’s increase your current cash flow and your net income position!  If you are in the real estate game to make money (and who isn’t?) and find the current market challenging then – yes – it would be wise to consider alternatives to the old way of doing business as usual.  The beginning of a new year is a time to examine new approaches.

We specialize in teaching property owners exactly that – a new approach to extracting the maximum profit out of their rental properties by converting those properties into dwellings for a unique tenant population.  A tenant population who at first glance appears to be tough, BUT upon closer scrutiny has proven to be the best tenants you might possibly ever have.  Who needs the hassles of tenant concerns which are costly and time consuming when there are other options?

Rental properties that are barely producing any income are now cash flowing handsomely for our students.  Upwards of 3 to 5 times what they had earned previously.  The success of the system we teach inspires many of our students to look for additional properties to convert.  Read some of their comments on our testimonial page at the top of this blog page.

Learn more by downloading our free eBook, see sidebar on the right.

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Max Cash Flow Now: Discovering the zoning of your unit might allow you to increase rental property income.  That’s right, especially if you own a multi-family dwelling, e.g., duplex, triplex or fourplex.  But even rental income on SFR’s can be maximized, usually 3 to 4 times what you may be earning in net income, and with surprisingly little additional property management commitment.

Most cities and counties allow mixed uses, defined as a rooming house, boarding house or group home.  You just may discover that your rental property can qualify for another use that would increase the rents you collect.  Our of our student here in Denver has.  He discovered that the zoning on his single-family residence would permit him to run a rooming house.  He was thrilled, because he could use our system to gross $4, 500 a month for his seven bedroom, five bath old Victorian.

City Planning, Zoning Department, Community Development or The Office of Community Planning & Development are the most commonly used names for the area of local government you should be contacting.  Simply call up and ask to speak to a planner of the day about additional uses approved for your specific zone.  Even if your rental is an SFR, check to see how many un-related individuals would be allowed to share the house.

In addition, most cities I’ve contacted around the country have online access to their codes.  Don’t be intimidated by the code itself… look for the definition section.  There, you will discover what actually defines a SFR and Multi-Family structure, also look for the definition of a family, which will state how many un-related individuals would be allowed to live in that dwelling.

To learn more about this subject and what we’re suggesting, download our FREE eBook, see sidebar.

Max Cash Flow Now: Rental property income comes in two forms, active and passive.  We’re all aware of the passive kind.  Purchase a SFR or multi-family, rehab to rental level and rent out to a family at market rates or to a section 8 renter.  But is it so passive after all?  Every rental property requires property management, either done by the property owner themselves or by a property management company.  In either case it’s an expense of either time or money that cuts into your net cash flow.

If you’re the type that does your own property management, our system should be of interest to you.  It’s a system that does require more of a commitment of time up front, and by that I mean the first two or three months, while you implement the program.  Then after that, your time involved is whatever you want.  We like to keep a pipeline of potential tenants and that takes a few random minutes every month.  Then when you are getting a renter in and one is leaving, your time is required.  Is it overall more time than a typical rental?  A little.  Is the extra time worth it?  Not even close!  Three to four times the net monthly income you were making on your property previously.  That’s right! All because you changed the tenant population, and put into practice a program that would consistently earn you an average $1000 per rental unit “net” or more.

To learn about our system, download our free eBook, see sidebar.

Max Cash Flow Now Tip #5:  Multi-Family is the way to go.  The cash flow return on multi-family dwellings can be awesome.  Consider one of our students 3 bedroom 1 bath duplex.  Market rents for one unit are $850 or $1700 for both sides.  With our approach, the same duplex grosses $3,999 every month.  That’s huge!

Take a smaller, 2 bedroom, 1 bath per unit fourplex.  Renting at market rates would yield $650 per unit or $2,600 for the entire structure.  Again, using our system, this exact same fourplex grosses $1,483 per unit or $5,932 for the entire fourplex.

Deduct your PITI payment, utilities (Yes, you pay a portion, but not all of the utilities – there’s plenty of room in the deal, and it’s actually to your advantage.)

Another student we coach had a triplex that we was getting market rents for.  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 with our method, grosses $3,140.

Are you beginning to get the picture?  If you’re a real estate investor that’s holding rental property, you must consider this system for your real estate portfolio.  It’s is max cash flow.  Find out more by downloaded our FREE ebook, Max Cash Flow Now, see sidebar.