My Favorite Type of LASH Property

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 flood 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, flat-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, which included principal, interest, taxes, and insurance, and that is what I agreed 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 mismanaged rental property around, I recommend that you read my book, How to Find, Buy, and Turn Around Small Mismanaged Rental Properties for Maximum Profit, which is available for purchase at my web site,

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