Can you sweeten the pot by providing shared laundry vending machines for tenants, and partner with a vending company and share in the profits? That could be another $50 a month which should help offset the loss.
Write all of your leases with tenants on a 6 month basis, so you can raise the rents quickly. 3 x rent raises at, say, $25 each = $75 a month in your pocket, which if added to shared laundry = $125 profit per month. That'll help a lot.
Our position right now is that there will be a HUGE number of foreclosures available to purchase at discounts in the next 12 months, so don't be too much in a hurry to find the first deal to get. And with the collapse of the sub-prime lending market, more and more people have entered the rental marketspace meaning supply & demand will work in your favor. Don't sign 12 months leases since its likely there is going to be a lot of headroom in rental price increases in the next couple of years.
Vlad
