Looking at the different areas and the way the whole cash flow system is meant to be, a monthly check that an investor can count on and get almost every month. That is what a Luxury Rental Real Estate is.
I have spent the last several months studying what type if any rental would have a steady stream of income and be affordable for the average investor. Working very hard on some of the investors in those areas, through a few rounds of Golf : ) and meeting Realtors in these areas I have come up with the properties that fit the bill of a Luxury Rental property.
First and foremost the tenant stay must have a great track record. 2-4 years is very good and that is based on actual owners I have talked to and their rentals in these areas. I talked to one one of the biggest Brokers in this area and they keep buying in those areas for cash flow and great equity positions because of the consistent cash flow and no vacancies .
One of these investors has 13 properties in these areas and makes $700 and up net on each property. That’s $8100 plus a month cash flow. With the long term tenants he gets the checks keep rolling in. They are in areas that people die to live in. They have the amenities that they want in these area and of course my main need is Starbucks : )
So lets look at the numbers of a property we just picked up in one of these areas. This property is a condo but the maintenance is very low on these properties because the association takes care of almost all the outside issues. No grass cutting, no exterior painting, etc etc
Assoc_________________ $ 66
Taxes_________________ $ 120
Insurance______________ $ 60
Property Mang__________$ 110
Net profit______________$744 per month
I should also mention there was under $5000 rehab.
We have homes also that bang out really great returns in these same areas. These properties are in golden areas and will get you the better returns. Call Brett 216-703-5740 Coldwell Banker or Email Me