how to earn money with real estate options_24

_{My favorite type of LASH property is a small (2- to 12-unit) mismanaged residential}

_{rental property, which is made of masonry (cinder block) construction and has}

_{single-story, side-by-side, separate-metered rental units with off-street parking. I}

_{specialize in this type of LASH property for the following five reasons:}

_{1. Rental properties made of masonry construction are pretty much immune to}

_{the termites, dry rot, moisture intrusion, cracking, warping, and shrinking}

_{that generally affect wood frame construction. And, masonry exterior surfaces}

_{are easier and cheaper to clean, prep, repair, and paint than wooden}

_exteriors.

_{2. Single-story rental units are easier and cheaper to maintain than two-story}

_{properties, and they are more appealing to tenants who prefer not to have}

_{someone living above or below them. Plus, you do not have the added worry}

_{that careless tenants will f lood out the units below them.}

_{3. Side-by-side rental units eliminate tenant common areas, which can be}

_{costly and time consuming to maintain and can pose a potential security}

_{and liability risk.}

_{4. Separate-metered rental units make tenants financially responsible for their}

_{own water, sewage, trash removal, electric, and gas utility payments. This}

_{eliminates the high costs associated with providing utilities to tenants who}

_{have no incentive to conserve and who want to get their money's worth when}

_{it comes to water and electricity when the landlord is picking up the tab.}

_{5. Small rental properties that are located in older neighborhoods and provide}

_{off-street parking are in demand because parking a car overnight on a narrow}

_{street can be risky at best.}

_{When I find a small mismanaged residential rental property that meets my}

_{LASH property criteria, I negotiate a two-year real estate option and a two-year,}

_{f lat-rate master lease, with a fixed monthly master lease payment, which is based}

_{on the property's monthly mortgage payment. For example, my last LASH property}

_{was a run-down six-unit building with a monthly loan payment of $1,600,}

_{to pay in monthly master lease payments. When I took over the property, each}

_{two-bedroom, one-bathroom unit was rented for $400, and all of the tenants were}

_{on month-to-month leases. Two years later, when I sold my option for a $25,000}

_{profit, all of the units were rented for $550 to tenants who were on 12-month}

_{leases. During the two years that I controlled the property, I increased its annual}

_{gross income by $7,200, which I used to clean and fix up the place. And I was still}

_{able to put $6,000 in my pocket! For complete information on how to turn a small}