Hello my name is Yuval Bartal, investor and investment manager in Savannah, Georgia. I hope…
Hello everyone,
My name is Yuval Bartal, an investor and investment manager in Savannah, Georgia. I hope to tell you later about myself using personal examples of our projects in the city. I hope to inspire the curiosity of all of you towards different types of investments and also contribute little knowledge.
We'll start with a very interesting method of maximizing profits in the homes we rent.
Rooming House
Many Israeli investors (especially those who do not live in the investment target) go through the same process with their assets:
- Property buyers
-Remember yields of 8% -12% on average
- After 3-5 years investors are back about a year and a half of return in order to renovate the property.
- Sell the property and enjoy the capital gain.
Renting a property by room is a good way to increase the annual yield.
Renting rooms is suitable mainly for student areas of the city.
The requirements for renting a property by room vary from state to state but in most cases are quite basic and property managers know how to enforce them. In most cases, installation of a fire-fighting system and a minimum of 4 will require a bedroom for rent.
This is an asset we acquired in the city of Savannah at $ 105,000
4 Bedrooms
3 SERVICES
Rented at $ 4,000 per month.
(Attached Image)
Insurance prices are higher (according to 2) and city tax rates do not change.
The house has "public" areas and is the responsibility of the tenants. The property owner pays for all monthly bills and the kitchen, dining room, living room and sometimes required to provide a bed and mattress.
Most management companies are not willing to work with rental property by room because the payment in most cases is weekly to biweekly and usually cash. There are individuals who provide services exactly for that.
Of course there are drawbacks:
-There is a more frequent occurrence
- High tenants turnover
In most cases the tenants rent a month.
All in all, my experience with these deals is much more profitable down the road, probably the property is located in a good part of the city and its value increases are almost guaranteed. Expenditures on redevelopment prior to sale are equivalent to the expenses of the property being rented normally but in a period of up to 5 years the entire investment is returned.
we will meet tomorrow
Link to the original post in the United States Real Estate Forum on Facebook - Works on a desktop computer (To view the post must be members approved for the forum)
The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion
In Savannah it is permitted to rent to AirBNB only a specific code. The management company charges 20% and there is more vacancy
High.
Question - So why do not you turn the house into an Airbnb and put a co-host there to take care of cleaning and receiving guests?
Hello Yuval. You do not make a small renovation even immediately after the purchase, before you put tenants in? But just before the sale of the property? Surely the students maintain less well the condition of the apartment, especially since they change a lot - in your experience are there more repairs to the property while renting compared to a property with a regular family? Thanks.
Hi Yuval, What do you need to check in order to rent property to a number of different people? Is the municipality supposed to approve such a thing? Is there some regulation on the subject?
Hello Yuval. I tried this model in Charleston, West Virginia this year and I wonder how you deal with the ever-changing Vacancies. There are very strong months and months with only two tenants - and all the bills are still on the landlord.
This month we moved the house to a regular rental.
Thank you to Dani Beit-Or, who was bellowed in the forum as a fan and initiated an excellent week, and of course thank him again for the excellent Axel Draw, and now accept the initiator of our new week to host the forum this week is Yuval Bertal !!! Good luck Yuval!