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Max Cash Flow Now: Rental Profits quadrupled with great tenants.

January 27th, 2010 No Comments »

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.

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Max Cash Flow Now: A simple-easy ROI Calculator.

January 26th, 2010 No Comments »

ROI Calculator

Here is a quick and easy way to determine how much you could earn using our system of renting out individual rooms in transitional housing.  $450 a month for private bedrooms and $750 a month for the shared ones (12×12 or larger).  Just add it up in your head, and then deduct your expenses; e.g., mortgage payment, insurance, taxes (PITI) and utilities,   Viola, there’s your net income, and on the average probably around $1,000 a month.

One of our most recent students just opened a 4 bedroom, split level, single family residence (SFR) in a nice working class neighborhood on January 11th.  Two rooms are renting out as privates for $450 a month, and two larger bedrooms will be rented out as semi-private rooms for $750 a month.  Semi-private rooms contain two beds.  So, a total of 6 guys will be renting.  Total gross rents collected will be $2,400 a month.

His SFR looks great with small homey touches and he had his first tenant the first day he opened.  A second renter moved in on the 3rd day after opening, and he continues to fill his rooms. Characteristically, the vacancy rate will be low, due to our successful coaching on initial marketing efforts.  In a short period, your property name is out there and through several channels and this soon creates a waiting list of tenant applicants. Transitional housing is in such demand these days that the nicer places fill up quickly.

Successful real estate investors make themselves aware of all possible strategies available to maximize their earnings.  Transitional housing HAS to be considered for the buy-n-hold investor, whether renting to college students, the mentally or physically handicapped, seniors or to our preferred tenant population; former offenders of soft crime.

Read tomorrow’s blog and learn why we refer to them as “preferred”, or . . .

Download our free Ebook, Max Cash Flow Now, on the sidebar to discover ALL the benefits of renting to former offenders.

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