In just about any apartment complex, there is hidden income—income that’s just sitting there untapped.
Income that wasn’t even considered in the purchase price.
Would you like to know where it is and how to cash in on it?
I thought you might!
We’re going to explore just one way to add thousands of dollars to your annual income… and how to do it almost immediately upon purchasing your first apartment property!
There are not many investments where you can give yourself a raise like you can with buying apartment complexes.
Why Vacancy is a Gold Mine
Let’s use our 200 unit apartment complex example again. If you’ve read my other emails, you know we bought it for $5.5 million and let’s say that it had a vacancy rate of 10%, or an occupancy of 90% at the time we bought.
What does this mean?
It means that there are 20 empty apartments sitting there.
For argument’s sake, let’s say the vacant units break down like this:
- 10 – 1 bedroom units that rent for $700 per month or a total of $7,000.
- 6 – 2 bedroom units renting for $900 per month or a total of $5,400.
- 4 – 3 bedroom units renting for $1,100 per month or a total of $4,400.
So, if they were occupied, you’d be looking at additional monthly income from these empty units of $16,800, or $201,600 per year.
Wow! That’s a lot of money we’re losing with them sitting empty, right?
So why are they empty – let’s get them rented, huh?
How to Quickly Reduce Vacancy
Well, we have to remember that these units are empty for a reason.
Could be they’re too expensive, not enough demand, needs to be rehabbed, etc., etc. So what do we do?
Keep in mind that essentially, the rental income from these units is free.
Because they weren’t considered in the purchase price, whatever you do with them is pure profit.
So what does this suggest?
Let’s rent them at a discount! Let’s get them filled and then worry about raising rents next year!
How much can you afford to reduce the rents? As far as you want! How about this:
- 10 – 1 bedroom units that rent for $500 per month or a total of $5,000.
- 6 – 2 bedroom units renting for $700 per month or a total of $4,200.
- 4 – 3 bedroom units renting for $800 per month or a total of $3,200.
So we’ve got a potential monthly income of $12,400 or $148,800 per year. A bit lower than the standard rates, but still a nice chunk of change, right?
There are lots of ways to do this too – ways that make for good marketing and get new tenants quickly, methods like offering a free month’s rent or a move-in special.
It doesn’t matter what you have to do – getting these units filled is going to mean a substantial boost in your cash flow.
This is just the beginning!
There are many ways to add value to your property – can you say that about any other type of investment?
Stocks, bonds, etc.? No way!
Come and join Adams Investor Group and begin raking in more multi-family profits than you ever thought possible!
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