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
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:
Here’s an initial analysis
Note:Â 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:
Beds | 4 | Purchase price | $215,000 | |
Baths | 2 | Mortgage (%) | 30% | |
Sq Ft | 1,620 | Mortgage ($) | $150,500 | |
Year | 1978 | Down-payment | $64,500 | |
Garage | 0 | Acq. fees | $4,300 | |
HOA | $0 | Cosmetic work | $10,000 | |
Asking | $230,000 | MTR prep | $25,000 | |
Listed date | 2/7/24 | Total investment | $103,800 | |
DOM | 140 | Int rate | 6.75% | |
ARV | $240,000 | Duration | 30 | |
Insurance | $135 | Mortgage payment | $976 | |
Property taxes | $385 |
Analysis/Comparison – Long-term vs Mid-term
Long Term Rental | MTR | |
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. | $976 | $976 |
Total | $1,740 | $3,056 |
Cashflow | $110 | $1,275 |
Before you get excited about these figures, there are a few important things to understand:
Overall, while the MTR model offers higher potential rent, it also involves additional actions and initial costs.
Next Steps
You can read and learn more about MTRs here!
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