If you were a contractor in 2020, your phone was probably ringing off the hook. With an unprecedented increase in the number of people working from home, there was a shift in the public’s appetite from houses in urban centers to more spacious houses in the suburbs. Of course, the supply wasn’t always there, which…...
People often times miss this very important question. They try and measure the cashflow of the future value, or they say they don’t mind feeding it some money each month. To be direct, it is only a good investment if it cashflows based on the rents and expenses of today, not the future rents you think you will get five years from now. Cashflow is the most important thing when deciding on a rental property.
I am going to show you how to look at a Zillow listing and decide if the property is cashflow positive or negative. Obviously, I want you to dig into these numbers and verify the rent and expense numbers, but start with just the basic calculation. If the numbers don’t work on the initial calculation, then it is not worth your time. If the numbers do work, it is time to move into due diligence and verify the rental and expense amounts. FYI in this hot market, most listing don’t work. That is why it is up to you to always look at the new listings and run the numbers daily.
Getting your down payment together is one of the biggest hurdles when you’re starting out in real estate. I can’t tell you how many times people tell me they want to make passive income on real estate, but then they save no money for a down payment. Instead, I hear excuses as to why they […]