How to find cash positive investment properties?
Any advice, where and how to find them?
Check brokerage websites, major and local.
College towns with expensive colleges. Get pre approval letter ready because good places go fast. Look into condos.
College kids are little shits that will break your shit. Condos are terrible investments too
Put in expensive clauses in the rental contract. Condos are less maintenance.
Buy without a mortgage. Then 100% are cashflow positive. Cut out the middlemen (bank, mortgage broker, appraiser, forced insurance, etc) — way better deal than leveraging with a lender. If you work with a lender you’re taking on a ton of unnecessary expense. Another way to look at it: the bank is happy to make the loan to you, despite all their expenses, for ~4% apr. They consider that a good investment because of the low risk. why wouldn’t you want the same? What’s good for them is even better for you because you don’t have their expenses, operating costs. So look at it as giving the mortgage to yourself. You can lend to yourself more efficiently than the bank can. Instead of putting $100k down on a $500k property, just get a $100k property. If you do take a loan, pay it down ASAP. Once you have 100% equity you’ll definitely have lots of cashflow.
Would you pay off the mortgage early if you have the cash but the rental income more than covers the mortgage? Or buy another place? Why pay 100k for one instead of 50k each for 2 with both positive cash flows?
2x overhead. But the real answer is that it depends. Sometimes you also want to reinvest the cash flow into renovating the property.
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