In this week’s episode I respond to another listener question who had previously booked time on my calendar. Here is what he said:
(edited for privacy) Hi Tyler – We spoke a couple of months ago. I have some units in TX that aren't cash flowing that well and I have a 4plex in Ohio that wasn't going well. I wanted to let you know that your talk really helped – I have turned around the Ohio property – new tenants and will start cash flowing this month. I am also set to close on 7 more units in the area – this is a deal I created – talking the owner down from 280k to 205k and I can push some rents as well.
I continue to struggle with the Texas properties. I looked into commercial loans from a few institutions and they all told me I am too small (about 1.1 million in total loans). I can't add storage units to 2 of the properties due to lack of space. On the bright side, it looks like my units are worth about 30% more than when I purchased them between 3 and 12 months ago. Pushing the rents is the only way I'll make cash flow – I've pushed the rents up 15% in a year and I project another 10% in the next 12 months.
I won’t give away all the goodies that I spelled out in the episode but I will say that there is almost always a way to make a deal better for you in regards to cash flow. Think about how you can add value to the tenant and make a better experience for them. Understand that if you provide the value they seek, you can monetize these things and improve your cash flow accordingly. The rest of the details can be learned by taking a listen to the episode.
Need help getting unstuck? Go to CashFlowGuys.com/BookTyler to schedule a call with me to help you grow as an investor or get unstuck.