Metro Atlanta MTR – projected monthly cashflow: $1200 per month

$ 42,000 Addtional costs
Suggsted offer $ 215,000

In short: this email is a bit long, but it’s worth reading – it will show you how we triple the cash flow for a rental property.

Over the past year, we’ve been working on ways to increase rent and lower expenses to boost your property and portfolio performance and cash flow.

In metro Atlanta, we’ve partnered with one of our long-term associates to offer a new, more lucrative leasing program.

Instead of leasing as a traditional long-term rental, we suggest listing it as a mid-term rental (MTR, also known as a hybrid rental).

In an MTR, the focus is on leasing to people who need a place to stay for more than a month but less than six months. Examples include homeowners dealing with insurance incidents who need temporary housing (often paid for by insurance) and film and TV crews in Atlanta who need accommodations for several months.

The MTR model shares some similarities with short-term rentals (like Airbnb) but is different in many ways.

 

For this property / general notes / things to know and address 

 

  1. It is owned by a bank or fund. It has been listed for 98 days – cash offer (of delayed financing) would possibly work better.
  2. From the photos, it looks rent ready. The kitchen looks wonky. Likely needs new appliances. 
  3. Wood-burning stove in the living room would be great and efficient for a family. Probably a liability for renters. 
  4. LVP throughout is really nice!
  5. Sunroom needs some TLC.
  6. Laundry room looks weird – will need to be addressed
  7. Backyard is meh.
  8. LTR: $1600-1800. Numbers are tight. 

 

We ran an initial evaluation and believe this house could be used as a mid-term rental (MTR). Here are some of our financial assumptions:

      • Current traditional lease market rent: $1850

      • Average MTR lease: $4275

     

    Here’s an initial analysis

    Note: We made some assumptions on certain expenses, since we don’t have all the figures. However, we believe you will still benefit significantly from this program.

     

    Property & purchasing details:

    Beds4 Suggested purchase price$210,000
    Baths2 Mortgage (%)30%
    Sq Ft1,620 Mortgage ($)$147,000
    Year1978 Down-payment$63,000
    Garage0 Acq. fees$4,200
    HOA$0 Cosmetic work$12,500
    Asking$230,000 MTR prep$25,000
    Listed date2/7/24 Total investment$104,700
    DOM140 Int rate6.75%
    ARV$240,000 Duration30
    Insurance$135 Mortgage payment$953
    Property taxes$385   

     

    Analysis/Comparison – Long-term vs Mid-term

     Long Term RentalMTR
    Rent$1,850$4,331
       
    Expenses  
    HOA$0$0
    Property Taxes$385$385
    Insurance$135$162
    Leasing (1/24)$77 
    Utilities$0$450
    Mo. Mang. (%)9% 
    Mo. Mang. ($)$167 
    Rev Share (%) 25%
    Rev Share ($) $1,083
    Total$764$2,080
       
    Principal & Int.$953$953
    Total$1,717$3,033
       
    Cashflow$133$1,298

     

     

     

     

     

     

    Before you get excited about these figures, there are a few important things to understand:

    • In the MTR model, you will be paying for utilities.
    • The management fee is in the form of a revenue share, and it is based on success and there is no leasing fee.
    • This model incentivizes the local partner to maximize the property’s rentability and minimize downtime, thereby maximizing its income potential.
    • Similar to short-term rentals, the house will need to be converted into an MTR. This requires an initial investment to make the house ready for a family to live in for several months, bringing only their clothes and suitcases.

    Overall, while the MTR model offers higher potential rent, it also involves additional actions and initial costs.

     

    Next Steps

        • Let us know if you have any questions or if you’d like to discuss this program further.

        • Once you decide to move forward with this direction, let us know, there are a few more steps needed to be taken before making an offer.

        • We will do everything we can to minimize any downtime, prep your property quickly, and put it into the MTR pool.

      You can read and learn more about MTRs here!

      ——————————–

      Disclaimer

      Information contained herein was obtained from sources deemed reliable, however, the sender makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The presentation of the property is offered subject to errors, omissions, changes in price and/or terms, prior sale or lease or removal from the market for any reason without notice. The analysis is provided “As Is”. All the information is believed to be accurate (except for the small effects of some simplifying assumptions), but is not guaranteed, and depends on the values entered for the property. This analysis is intended for the purpose of illustrative projections. The information provided is not intended to replace or substitute for any legal, accounting, investment, real estate, tax, or other professional advice, consultation, or service. Sender and/or the owner(s) are not responsible nor liable for any damages arising from the use of the analysis info.

      • Updated On:
      • June 27, 2024
      • 4 Bedrooms
      • 2 Bathrooms
      • none Garages
      • 1,620.00 ft2
      • Year Built:1978
      Property Id : 66854
      Price: Suggsted offer $ 215,000
      Price Info: $ 42,000 Addtional costs
      Property Size: 1,620.00 ft2
      Property Lot Size: 4,356.00 ft2
      Rooms: 5
      Bedrooms: 4
      Bathrooms: 2
      Year Built: 1978
      Garage: none
      Garage Size: 0
      Basement: none
      External Construction: Cedar, Wood Siding
      Roofing: Composition
      Property Taxes (mo): 385
      Insurance (mo): 135
      Repairs (mo): 100
      Other Features
      back yard
      fenced yard
      Transport
      Supermarkets
      Schools
      Restaurants
      Pharmacies
      Hospitals
      $ 825,185.88
      per month
      • Principal and Interest
      • Property Tax
      • HOA fee
      $ 1,019.21

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      Information contained herein was obtained from sources deemed reliable, however, Simply Do It and/or the owner(s) of the property make no guarantees, warranties or representation as to the completeness or accuracy thereof. The presentation of the property is offered subject to errors, omissions, changes in price and/or terms, prior sale or lease or removal from the market for any reason without notice. The analysis is provided "As Is". All the information is believed to be accurate (except for the small effects of some simplifying assumptions), but is not guaranteed, and depends on the values entered for the property. This analysis is intended for the purpose of illustrative projections. The information provided is not intended to replace or substitute for any legal, accounting, investment, real estate, tax, or other professional advice, consultation, or service. Simply Do It and/or the owner(s) are not responsible nor liable for any damages arising from the use of the analysis info.

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