i saw one boarding house for sale with great return.
by the way i am so aware that what i can do with that property except cash flow. what i mean is if that propety is registered as a borading house, which means it must be a boarding house? i can not change the title to just a residential?
if i buy a boarding house, i heard the occupancy is 100%, just wondering how i find tenants and how i can manage it?
i need to live around there and need to look after it? or goverment will look after it.
i really wanna buy that propety but so worry… coz no idea how it works and how i can handle. Please give a answer.ThanksA lot of questions there, and the only way you’ll get answers is to really do your homework. Talk to Council re the zoning of the land. This will tell you what else can be done with the property if you decide not to operate it as a boarding house. Talk to agents in the area to find out if there are comparable properties and if so, what is the vacancy rate (I wouldn’t rely on 100%), who are the likely tenants, what they would charge for managing it.
If it’s feasible for you to live there and manage it yourself, you could do that. The government sure won’t do it for you and would you really want to hand over control of your investment to the gov’t??? If you are going to use an agent, do your homework and find one that will be on the ball. With this type of property, you’ll have a lot of movement of tenants in and out, so you need an agent who keeps a close eye on the tenants, and is proactive in keeping the vacancy rate down.
Check out the likely maintenance required. Use the services of a builder to go through the property and point out what needs doing and approximate costs. No doubt the property is furnished, so maintaining the furnishings can be another expense.
Above all, crunch the numbers and try to ensure that you don’t overlook anything. These sorts of properties can provide great +ve cashflow, but you’ll have to work at it – it won’t be an easy ride.
Hope this helps, and good luck! Could be a great property!
Janet
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