Efficiencies - Posted by tonyd

Posted by Nate(DC) on March 20, 2002 at 13:29:08:

No, you pretty much hit it on the head. The shorter the lease term, the more you can charge but the higher the turnover, and the more money and time you will need to invest in marketing and management to deal with that turnover. For example, a motel has all one day leases (or maybe a few days at a time).

Good luck,

Efficiencies - Posted by tonyd

Posted by tonyd on March 20, 2002 at 12:01:57:

I have noticed that several Ads displayed efficiency apartments generating much more money than regular rentals. since efficiencies rent out on a weekly basis (at least these do) i can see the cash flow but can anybody tell me additional pitfalls of owning such properties? Seems like there is much less stability with all the churn. Any comments?

Re: Efficiencies - Posted by David Krulac

Posted by David Krulac on March 20, 2002 at 18:35:42:

you can make lots of money but its more like a job, you will have higher tunover, potentially every week, you will pay ALL utilities, you will furnish the plcaes with beds, sofa, dressers, kitchen tables, TV, that you usually don’t supply with apartments or rental houses.

depending on how many you have it could be a full time job. for me I don’t want a job, i want less work not more work!

David Krulac

Re: Efficiencies - Posted by Brian, WI

Posted by Brian, WI on March 20, 2002 at 16:31:01:

Call them efficiencies, or I guess rooming houses if they are being rented on a week-to-week basis.

In December of 2001 I owned 3 rooming houses, today I have just one. The reason is long and don’t need to get into it here, but my POSITIVE NET cash flow from 3 rooming houses about equaled my GROSS pay as a Police Officer!!!

Yes they are more labor intensive, etc., but with that kind of cash…maybe it’s not all that bad hey?

Well anyway, with paying down the mortgage on the remaining(largest) rooming house, I ran some quick numbers and will be in about the same boat!!! NET income from just 1 rooming house about equal to my GROSS income at work. Things worked out well for me.

Brian, WI