Multi-Family Profits Maximized With Transitional Housing. Atlanta, GAMulti-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 different approach from the typical way of renting to individuals or families and there are things to know that will save you from making unnecessary and costly mistakes. (To discover more about transitional housing download our free Ebook “Max Cash Flow Now” at our main blog site.) If done properly the net rental income on multi-family dwellings can be tremendous. In addition, since you are renting to a specific tenant population you can alter 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 produce $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 benefit 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 starting 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 assistance and coaching to avoid any pitfalls you can start earning max cash flow now.