tached to the “rooming house” concept and the image of slums that it conjures for many. Unfortunately, even in our area there are some landlords whose property and behavior still fit that stereotype. But our company is seeking to change that. There also is a nice element of goodwill involved in our approach, as our properties provide a safe and clean place for applicants with limited housing options to call home. We often encourage local mentees or investor partners to drive by some of our properties and identify the ones that are part of our Shared Living portfolio. They are pleasantly surprised to see that,
opment and growth, or just ahead of the curve of currently high-appreciating areas. The suppressed prices are indica- tive of the location and condition. As an element of this strategy, such properties are held in our portfolio for an aver- age of three to five years, allowing the local wave of urban renewal to reach the subject areas and provide increased appreciation over a longer term. In so doing, we as local investors are able to purchase lower-priced properties and truly make the numbers work. Conceptually, the strategy is simple. Im- plementation, however, is more involved. We have been able to succeed by ac-
quiring low-priced single-family proper- ties and then using a very systematic and fairly automated process to convert each to a functional, code-compliant, small multifamily unit. That enables us to more than triple the gross rental income and subsequently provide a generous return on our investment capital. While the idea of room rentals may not sound appealing to some at first glance, there is remarkable potential to enhance one’s real estate portfolio.
TURNING THE TIDE To be certain, there is a stigma at-
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