Is it a Flip or Flop?
The Real Life Pursuit of CASH-FLOW!
In a rent-controlled world should you vacate tenants to obtain market rent, or be content with the allowable annual rental increase percentage, as governed by Rent Control? It depends on your target rental rate, your target tenant clientele, and the cash on cash return for your efforts!
In this Week’s Video, I give you an update on the status of my most recent remodel project which consisted of vacating an entire multi-family complex! Sounds scary I know, and honestly I get a little nervous each time I do this, but the payout will be HUGE! Keep in mind I have had to battle with increased labor costs, increased material costs, and a material shortage. Lucky for me I stick with the adage “I will, until!”
This is the 2nd installment in a 3 part series as I attempt to assist those owners who avoid extreme renovations because they assume the process is too much hassle, they do not have the “know-how”, fear that the process is too costly, or incorrectly assume the final payout does not justify the capital investment.
What is my goal? Bottom Line – I want to help landlords obtain maximum cash-flow (especially in a rent-controlled market). In my opinion, owning multi-family investments should be extremely financially rewarding, while at the same time not overly consuming of your time. Second, by completing these types of improvements, when it is time to sell, a buyer will happily over-pay for your property because your rental rates & the condition of the property justifies above-market pricing!!!