Imagine if you could purchase a problematic property at a discount …… and then you do a few things to it… and then it starts gushing money. That would be a powerful wealth building strategy – right?!
It would allow you to create wealth whenever you wanted. It sounds good theory… but does it work in the real world?
Walking the Talk
I’ve recently purchased a problematic commercial building in an amazing location. It has serious structural and electrical issues. I figured I’d create some furnished rentals and drum up some ancillary income streams to pay the bills. But then reality hit…It’s difficult to be creative while you’re depleting your savings to keep a project going.
It’s scary owning a potential money pit.
But you do stand a chance if you live out of your imagination. There is at least one tool that can help you do this.
40 Ways to Increase Net Rental Income
Ideas from my 2015 book 40 Ways to Increase the Net Income of Your Rental Property were just what I need right now. The book presents over 40 “Tips” which are mini business plans that you can use to increase your income.
I’m going to use Tip 41 and Tip 36, storage and advertisement, to bring in an additional $1,600 per month.
Altogether, I’m using Tips 8, 14, 27, 36, 39, and 41 to make this project a success.
I’m also going to use the “Power Plant” Tip in the near future since solar generators are now so affordable.
Here’s the Plan
1 – Turn three outdated commercial units into a mini storage and rent space at $0.90 per square foot per month. Typical market rate for storage in my area is $1/SF so I’m pricing myself to take market share. I’ve got 4800 SF of potential storage space. If I crack the code on this income stream, I could generate enough to cover the mortgage.
Here’s a look at one of my 508 SF units. It doesn’t have gas, electricity, water or restrooms BUT it still has cashflow value.
It’s now brings in $446 per month as a storage unit for a vintage furniture company.
We paid a window artist $200 to put this “Your Ad Here” sign on our windows.
It’s important to let the passerbys imagine their ad in that space.
We recieved our first inquiry for $300 for two panes per month. Let’s see if the lead turns into something.
3 – Create furnished rentals using strategies from Extended Stays for Landlords. The extended stay market proved financially viable even during the pandemic. If you’re in a secondary market, the time to get started with extended stays can not get better than right now.
The Reference is an Asset
We all need to be prompted to consider new solutions and update our thinking.
Add 40 Ways to your library so you can find ways to grow your net income without investing more money out of pocket. And, just like I experienced, when you’re stuck and stressed, this reference book will help you find a profitable way forward.
As you can see, the prompts are insanely lucrative for a $18 book.