What are your thoughts on apartments that are weekly rentals? Good idea/bad idea? I'm not talking about short term rentals or Air bnb properties.
Here's the skinny, I have a potential opportunity to purchase a multifamily that (supposedly) doesnt have much turn over but all existing tenants pay $200/week. The cash flow from all the units would be incredible to me. It almost seems too good to be true. The owner does pay all utilities and cable but has historical records of the monthly charges, and again it still has incredible cash flow with that factored in.
What am I not considering that I should be? A property mgt company would be a must for me in this scenario, but other than that I just cant find any hidden costs or risks. Thoughts???
are they section 8? I don't know the neighborhood, but what type of people typically lease their home by the week there which equates to 800 a month? Students? Welfare recipients? Criminals? People without SSN's? Money may look good on paper but there may be a whole lot of heartache with applicant base.
Thanks for the input. My understanding is that they are not Section 8. I can only guess, but I would think some of the tenants dont have SS#'s and others just suck at managing money and cant qualify to live anywhere else. I know that may sound like a red flag, but I see these weekly rate hotels in my area and they dont seem to be hurting for business, and they're charging MORE than $200/week too.
These people need a place to live too, and if they pay their rent...why not? That is just sort of where my head is at.
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