Best way to Maximize Cash Flow on Rental Properties

[Michael McCormack]

Hello Everyone,

I was wondering if any experienced landlords had any tips for maximizing cash flow in duplexes/triplexes.  To me it seems as thought the initial cash flow that you begin with after purchasing the property doesn't change much until you raise rent.  Has any creative finance strategies/improvements made to the property that can help increase cash flow?  In this case I'm interested in maximizing cash flow in general.  Thanks in advance.

Michael

[Michael Boyer]

Hi Michael,

While not super creative, doing all the basic landlording blocking and tackling well helps--keeping vacancies low, turn arounds fast, and maintenance costs down. I have heard of storage/garage or laundry angles for revenue (if you have these to charge for), but for most 2-4 unit owners, the early story is probably not a quick top line growth story (but a slow one as the market will usually incrementally justify increases) but you can improve the bottom line (alot) as a really diligent hands on landlord in my opinion.... so your costs can come down, be it for DIY repairs, painting, mowing, management, etc)... and this in turn helps with happy tenants who will stay (reducing costly vacancies)... Best of Luck!