Let ’ s explore the different types of properties that can generate positive cash flow from day one and key strategies to maximise your returns .
1 . Multi-Family Units or Multi-Lets
Multi-family units , such as duplexes , triplexes , or small apartment buildings , provide multiple streams of rental income from a single property . This setup mitigates risk because if one unit is vacant , the income from other tenants helps cover costs .
Additionally , multi-family properties often have lower operational costs per unit compared to single-family homes , making them an excellent choice for generating positive cash flow from the outset .
Properties with Cottages at the Back A highly effective multi-let strategy involves properties with separate cottages or granny flats at the back .
These units allow landlords to rent out additional spaces without needing a completely separate property .
Key advantages of properties with cottages include :
• Higher Rental Yield : Renting out a main house along with separate cottages increases total rental income while keeping overall property costs stable .
• Diversified Income : If the main house is vacant , rental income from the cottage can help cover expenses .
• Attracting Different Tenant Types : The main house can be rented to a family , while the cottage may appeal to single professionals , students , or retirees .
• Flexible Leasing Options : The landlord can opt for long-term rentals , short-term Airbnb-style leasing , or a mix of both for maximum returns .
38 REI MAGAZINE FEBRUARY 2025