I will be generating a net income of about $50,000 per month from the realty company. This will assume for 100% occupancy, and all parking spaces leased out. Simply put, the investment of $5,000,000 will generate all of the income I would need. I could just as easily devote $20,000,000 to my investment, and not have a realty company. I am sure I will be set with no care in the world. However, I will not be contributing a positive influence on society. Here is how having the realty company will benefit the various groups.
Employees
I will have several of employees. I will have a realty agent who will show the places, and make sure the tenants are doing well. They will address any issues the tenants will have to me. If for example, there is a pest problem, the tenant will call the agent, and the agent will call me with the problem. This will assure that they have a job that they can keep even after the residences have been rented out. I will have 2 maintenance people. The reason for 2 is so no one person will be on call 24/7. With that said, the maintenance person on call a particular night that there is an emergency will be contacted. In the event of an emergency, the tenant will call my pager number, and leave a message. I will either call the tenant back if I need more information, or call the maintenance on call. This means the maintenance person won’t be called upon for trivial issues. I will also have 4 receptionists. They will handle the office duties, and answer telephone calls. I will likely be in the office to address any would be issues, and the receptionist will send any really important calls to me.
Myself
Simply put, I will benefit from adding the $15,000,000 that the realty company and assets will cost me into an investment fund to generate more income. However, for good karma, I will reap some reward for that. Simply put, there is not enough Section-8 rentals in my opinion. I will be contributing to resolving the problem in a small way, and yes – the money will be a benefit too, however – again, I will benefit more from an investment account.
Tenants
All buildings will be gutted and renovated. This will mean one could think of the residence as nearly brand new. With that said, the tenant will get a high quality residence that would normally not be available to them. When they have to pay electricity, there will be solar panels which will dramatically reduce the electric bill. None of my residences will have a gas line, so. that means on less bill. Apartments will have almost all of the utilities included – therefore making the value even higher.
If the tenant has a problem, they will contact the realty agent that shown them the residence, and they will work to resolve the problem. If there is a maintenance issue, they will contact maintenance. If they aren’t receiving any help from these sources, they can always reach out to me where I can direct the appropriate hands to address the issues. The tenants will have a residence that some may call to be higher end, or even luxury in one or two cases.
The only units not supported by Section-8 will be the SROs (Single Room Occupancy). Even so, the rent will be less than $1,000 which means someone working or living on disability will be able to have a place to live even though it is above the 35% suggested rent payout. This is a minimum wage problem, and not a rental problem. I will need to be able to profit from the residences, or it would not be worth it. I have utilities, taxes, and employees to pay for.