How to Find Positive Cash Flow Properties?
Owning rental properties is one of the best ways to earn income or even a side-income. However, any kind of rental property is not going to do the job. The rental property must have a positive cash flow.
The basic definition of cash flow is income minus all the expenses that incur in a property. So in the real estate world, it’s the income you earn from getting rent on the property minus all the expenses such as a mortgage, insurance, maintenance fee, taxes, and more. Whether you have been in the real estate business for a long time or are just starting out, you must always remember one thing: Cash (flow) is king. The more positive cash flow properties you invest in, the more cash you earn. The idea is really simple. The amount of money you have leftover from paying all the expenses from the rental income you receive is all yours and you don’t have to pay that money to anyone else. It’s COMPLETELY YOURS.
So how can you find positive cash flow property? Getting positive cash flow depends on your finances along with the area you are investing in. Are you trying to invest in a university area where students are renting or near a junction of offices where workers are desperate to find close commutes? You also have to think about how much money you are investing in initially, along with the expenses that will incur. It does not only mean remodeling expenses and taxes. There might be a lot of uncertain expenses such as fixing a broken pipe or ceiling (maintenance fee). You also need to pay the property manager their share on the rent, if you yourself are not going to manage it. Trying to come up with the numbers and pushing those numbers in the calculator is very time consuming and takes too much effort. But you gotta do what you gotta do!
Fortunately, finding cash flow properties in areas you want to invest in doesn’t have to be difficult as it sounds. RealCash helps you find positive cash flows without the need for calculators. When you are certain on a location you want to invest in, you can sign up for plans on our website and enter your details. By entering your preferred zip codes, your financial information, we will sort out the best matches for you (pictured below). And in no time we will email you the list of positive cash flow properties along with some negative ones too (it’s up to your preference). Along with cash flow deals, we also provide you with a return on investments such as Cash on Cash Return and Cap Rate. It's another important aspect to consider when investing in real estate.
If you want to learn more about cash flow, i.e. how to calculate it manually and what are the things you should consider when looking for an investment property, you should definitely read this blog. Along with the list of things to consider, we also provide you with the Top 5 cities we think are the best cities to invest in this year. If you don't know where to get started, start from looking into those properties!
It’s this easy to find positive cash flows. It’s an essential factor to consider in the real estate world. Signing up for RealCash will save you tons of time and effort so that you can focus on finding the right property to invest in!