Changing your tenant can boost cashflow
Ever consider changing tenant? If you’re an agent, then you either have, will, or are currently struggling to find deals that meet a 6% cash-on-cash return.
It’s not just you, though.
We recently ran a poll and found that 75% of our agent community struggles with the exact same thing.
But just because you can’t find deals that meet this criteria, doesn’t mean they aren’t out there.
That’s why if you struggle to find deals that make sense, I recommend changing the tenant type you’re looking for.
If you only look for long-term tenants, you’re missing out on other rental strategies that could bring in even higher cash flow.
Take this property for instance. An agent in Boise, Idaho found this deal that supposedly required an investor to put $130k down to break even.
Not the most ideal situation.
But, looking at it from an STR point of view — same property, same purchase price, different tenant — this deal yielded a 20% cash-on-cash return.
That’s 14% more than your standard 6% JUST by using an STR strategy.
Now, let’s say short-term rentals are not allowed in your area.
The same concept applies. Except try a mid-term rental strategy. 30-day stays.
This type of tenant will still make you more revenue regardless compared to your average long-term tenant signing a lease.
Bottomline -
Look at every property through a different lens. Test out different rental strategies. Gain higher potential on your deals.
Leave a reply in the comments and let me know — are you easily finding deals that meet a 6% cash-on-cash return?
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