Out for Justice

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    • The rent rate is low
    • The taxes are high
    • Extremely high turn over rate
    • The property does not appreciate
    • The tenants cause lots of damages
    • The property requires  a great deal of renovation and rehab
    Upside:
    • Very low vacancies because people are always looking for affordable  housing.  Also with the foreclosure rate as high as it is, many people are returning to renting.
    • Purchasing property in these neighborhoods are relatively cheap ($30-100k)
    • Government assistance is in abundance
    • A quick way to build your portfolio
    • Allows for great cash flow
    The student housing challenges are:
    The rewards can be:
    • The property continually appreciates in value
    • A never ending stream of tenants
    • Excellent cash flow
    • Double the rental income
    • Advance rental payments
    • Little to no repairs which has a great affect on overhead expenses
    • Potential for great auxiallary income
    Let’s talk numbers: Property A  and Property B
    Property A is a two unit building with three bedrooms in each apartment:
    1. cost $30k
    2. rehab $10k
    3. monthly rental income $1300.00
    4. monthly expenses (taxes, water, maintenance, mortgage) $725
    5. tenant headaches and incidents $$$priceless
    6. monthly net $575.00
    7. annual net $6900.00
    1. cost $175k
    2. rehab $30k (rehab to update the units, purchase furniture, appliances)
    3. monthly rental income $3900.00
    4. monthly expenses (tax, water, maintenance, mortgage) $1475
    5. tenant headaches and incidents $priceless
    6. monthly net $2425.00
    7. annual net $29100.00
    Rest in Wealth  . . . . .
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