How to Not Lose Money Investing in Rental Properties
As with any investment, we want to make money not lose it. In this video tutorial I cover how to use a property calculator to see if a rental property investment will make money or not.
Key Points:
- Does the property meet the 1% rule?
- Have you looked on the county property appraiser site to get a real estimate of taxes?
- Insurance quote from a broker?
Those are just a few of the things you need to properly analyze a rental investment.
Why Positive Cash Flow is Key
When we invest in rental properties that return positive cash flow each month, we have effectively taken ourselves out of the appreciation game!
Appreciation is great, but gambling on that as your only potential way of earning a return in real estate is risky.
You can get a copy of the calculator used in this video at: https://scaredycatguide.com/ and find plenty of blog posts with real estate investing info!
Best Regards,
Interesting
Good post
Well, the few rental properties I've owned all lost value (due to regional economic slumps) but at least they had positive cash flows... which allowed me to not have to give them back to the bank.
Yes! and that is why cash flow is king. Up, down, sideways market...doesn't matter people need somewhere to live, collect that cash flow.
Nice post sir. Thankyou!
I'm glad that I live in the Philippines and the house that I have here is all paid for. It's not much, but it's good enough for just my wife & I.
Owning a home free and clear is always a good thing, congrats!
img credz: pixabay.com
Nice, you got a 10.0% @minnowbooster upgoat, thanks to @scaredycatguide
Want a boost? Minnowbooster's got your back!
The @OriginalWorks bot has determined this post by @scaredycatguide to be original material and upvoted(1.5%) it!
To call @OriginalWorks, simply reply to any post with @originalworks or !originalworks in your message!
Nice calculator, of course no one wants to invest on a property rental only to find out they're losing money instead of earning. It makes more sense to invest on properties which actually gains. Thanks for sharing!
buena publicación =)
Congratulations @scaredycatguide, this post is the tenth most rewarded post (based on pending payouts) in the last 12 hours written by a Hero account holder (accounts that hold between 10 and 100 Mega Vests). The total number of posts by Hero account holders during this period was 226 and the total pending payments to posts in this category was $3031.58. To see the full list of highest paid posts across all accounts categories, click here.
If you do not wish to receive these messages in future, please reply stop to this comment.
So true, unfortunately most of us are speculating.
Whether in houses, stocks, or cryptocurrency. Good for you, you get a CASH FLOW Gold Star!
Do you invest primarily in single family homes then?
Thanks! I have a mix of townhomes and condos (predominantly what makes up the market in my area)
Cool, where are you from? I live in Ohio and I'm interested in getting into realestate in 2 yrs (hopefully after a market correction!)
I'm in South Florida and I know several local investors that have invested up in your neck of the woods. Much better cash flow numbers in Ohio compared to my local market.
I entertained investing in Cleveland last year as I have a bunch of friends there and know the area a little.
Yeah we are expecting the market to slowdown here, but places like Ohio the ups and downs are more muted compared to FL.
And yeah, feel free to check out the scaredycatguide.com website got tons of good info on their about rental investing.
Im in Columbus, so ideally I'd start here, but no guarantee I'd fi d what I'm looking for. And will do, have you considered multi family properties down the line?
My friends dad owns rentals in the columbus area I believe. I'm open to multi-family, looked at a few triplexes last year but #s didn't make sense.