Low Income / High Cashflow?

[Steve Rozenberg]

Who Likes the Low Income / High Cashflow Business Model?

[Hal Ennis]

My wife and I decided 20 years ago that everybody in New Jersey seemed to be building for the high end, and ignoring the low end of the rental market.  Of course there's ALWAYS demand for decent housing at an affordable rate.

We found a niche in boarding houses, but we were VERY selective about our locations:  choosing solid, working-class to middle-class neighborhoods.  Each property had been severely neglected and catered to residents who blighted the neighborhood. 

We were able to buy these places very inexpensively, because other prospective buyers only saw it as it was.  We'd take possession, give proper notice to all residents of new "house rules" designed to bring order out of chaos, and start fixing the place up.  This included furnishings, appliances, improved common areas/baths, and (here was the trick) cable and internet available throughout the house. 

With better living conditions and amenities, we raised the rents, enforced the house rules to get rid of the trouble-makers, and quieted the places down.  The neighbors were happy, police respected our new style of operation, and we proved something in the process:

A property will attract the tenants that it deserves.

Our residents are decent people who are down by circumstance (lots of divorces and down-sized white collar workers), not because of bad lifestyle choices.  They appreciate what we've done and look out for our property because they really consider this THEIR home.