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.

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Max Cash Flow Now: Rental Property Profits. Sell your real estate portfolio as a business and cash in!  That’s just one of the exit strategies for owners of transitional or alternative housing.  This strategy works for those who have multiple properties or who want to pick-up several properties with this program in mind.  The idea; selling a group of homes as a package.  Not just a real estate portfolio, but an active business package with systems, forms, experience, contacts and a profitable track record.  The result; selling for much more than the value of the underlying real estate alone.  As a working model it generates double or more the market rents normally charged and it is set up to be doubly attractive in terms of resale.

Another exit strategy is a modification to the standard fix-n-flip model.  Purchase a single distressed property, well situated to public transportation and other conveniences, rehab to rental level, furnish and equip, fill with tenants for the purpose of making an active yet small venture.  Enjoy the increased cash flow this investment generates while you are waiting for your buyer. Turn around time has been is from 3-6 months.

So in summary, you won’t be selling a normal rental unit(s) that is rented out for market rates, you’ll be selling an entire working system – one that generates 3 to 4 times the cash flow 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 lucrative producer.  Don’t you just love creative options?

Learn whether you should consider Transitional Housing for your investment portfolio by downloading our free eBook by typing in your email address in the space in the right side bar.

Max Cash Flow Now: Maximizing rental property profit for one our investor students has allowed her to discover a great new sideline.  After she retired as a high school Principal last year, Phyllis was looking for something to do where she could give back to her community, as well as contribute financially to her family.  To fulfill her financial goal she started doing fix-n-flips in the Denver area with some success, but that kind of investing wasn’t completely satisfying her personal aspiration.

Phyllis called a week after hearing us speak at a local Real Estate Investment Association (REIA) meeting, quite excited about learning more about our system.  She was days away from putting the 3 bedroom 3 bath SFR, she had just rehabbed on the market, which would have netted her a modest profit.  After our initial meeting, we drove to the home and found that it would work perfectly for our program.  We also discovered that she could convert a family room into another large bedroom.  What a bonus!

Market rents for this neighborhood would have placed this home in the $1,250 to $1,350 monthly rent range.  However utilizing our method, she now grosses over $2,600 per month.  And what’s equally important is that she really enjoys managing the unique tenant population.  It is now fulfilling her desire to give back to her community and has become a “hobby” rather than just another flip or rental.  Read Phyllis’ full testimonial at http://bit.ly/6EUhIG.

Phyllis with tenants

This is a prime example of the private sector having an influence on public safety, the re-integration of entire class of renters back into the community, and the eventual reduction of tax dollars allocated to his tenant population.

Please join us and learn about our program by downloading the FREE eBook on the side bar.

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: Market rents may be heading down, so quadruple rental property income instead.   So,  if you are in a money-making frame of mind and either presently own or want to own rental property, you could quadruple average rental income on your residences.  Quadruple, you say?

That’s right, with all the foreclosures on the market all over the country, and not enough home buyers yet (yes, we’ve heard home sales in some parts of the country are up – are you in one of those exceptional pockets?) the rental inventory is increasing and creating higher than expected vacancy rates and lower rental rates.  However, if you could still earn a profit it would seem that because of the increased inventory of distressed properties now is still a time to buy and hold residential real estate.

A new real estate investor entering this market will likely make a few mistakes.  Possibly purchasing what might appear to be a good deal, only to find rents in that part of town have fallen.  Or perhaps you purchased a property when the rental rates were higher and slowly you’ve seen them decline?

How do you get positive cash flow from a property like that?  Don’t give up or put up with the circumstances – find a way – there is always a way.

So do your research.  Check with property management companies about the status of rents in the neighborhood that you are focusing on.  Discovery the trend, and be on its upside.  Explore other alternatives and think out-of-the-box.  Unusual times call for unusual solutions.

How?  Just read our FREE eBook and keep an open mind.  Make money!!  Do something for yourself, your family and your tenants!  To download our eBook, see sidebar.

Have a wonderful Thanksgiving!