Life Style (LQ) Rental Business

A worry I have concerning my Nomad business model is if tenants do not get along with each other. A domestic violence event at my property would entail showing up for court, submitting my signed leases, and dealing with a tenants bull shit. This is a very real threat to my business and would be quite a headache.

Is there a way around this? Not with the Nomad model. You would need to change your investing strategy toward a BRRRR style to get long term tenants in an investment property that you do not live in.

For BRRRR to be a real possibility I’m going to need private money. I need to find a multi-family deal, manage the property, and use private money to finance the 20% down using a bank loan for the other 80%. 6 months after acquiring the property, when I refinance the loan after the renovations, I would pay back the private investor his principal plus any distribution of profit gained from the renovation and sale part of the project.

If the deal all goes tits up the same private investor will re-invest the same principle into another multi-family deal. The beauty of this investing strategy is the same initial down payment and renovation budget is being recycled into every new property. I don’t have to save $100K over and over again, I just need to raise $100K once, execute the plan, and recycle that $100K into more properties that cash flow.

This Nomad model can work as a successful NOI financial independence business. Other people are doing it in other markets. Again the key is matching tenant personalities together and onboarding only the tenants you thing will get along for the long term. So a hippy pot head cashier shouldn’t be roommates with a technology professional.

You can always go track down the investors who are running room-by-room models and inquiring how they handle the tenant portion of the business. In exchange you can provide digital marketing services. This win-win pitch would help in getting the relationship off the ground on the right foot.

Also I’m reminded the agent I will be working with built his business following the exact model I’m using. I have good people in my network and will lean on their expertise when I need to.

It just occurred to me I’m building a life style (LQ) rental business.

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