Hey Guys and Gals,
I thought u might like to hear a little from our US counterparts in regards to being a landlord. [party]This survey discuss’s (from a US point of view) whether or not it is possible ,and whether it is common,&/or easy to get positive cashflow propertys
and live off the income.[strum]Post yr thoughts too please guys with yr experiences in the current markets yr involved with !
http://www.houstonrealty.us/bb/index.php?showtopic=7444
Regards
luke“Don’t let yr character be impacted by yr surroundings, instead make yr character impact yr surroundings”
– Rachel Scott(17 yr old killed in columbine shooting 1999)http://rachelschallenge.com/Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Thanks for that WorldChanger,
quite a surprise to hear the majority a really just ‘treading water’ so to speak.
So if that is the majority of cases, where does the real money making come from? Is it through multi-family dwellings such as blocks of apartments, subdivisions, flips – what?
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Hey Marc,
I just liked getting the guys perspective in houston as many (like joshua berg and michael plaks etc) are very experienced real estate guys.
.It is just a good reminder that its of course possible but not always easy to get consistent cashflow.If their is only a slim margin of cashflow in a property each month that doesnt leave alot of profit in the deal by the time you have a tenant leave and have some repairs.I have also found It is also alot of work managing managers when u hold property especially in certain areas.(talking my usa experience here,though i have found australia easier to keep cashhflow properties but they are still slim margins)
Many guys buy with equity building (capitol growth)in mind as their main purpose ,but aim for cashflow aswell..its just that often the cashflow gets eaten up by repairs, tenants skipping etc.,so having the capitol growth increasing makes the deal worthwhile.
The best profits I have found being made in the states though, are when people are buying the properties undervalue and on selling them, turning them over regularly by either wholesaling as is , or doing some repairs then onselling.
(this strategy of course taking away the work of
keeping the property running while waiting /hoping for the equity to grow before u make yr profit )I personally havent had much experience with developments (ie new homes and subdividing etc) in the US though so cant comment on the profit margins.,but am sure that would be a good strategy if yr “on the ground”over there.
“Don’t let yr character be impacted by yr surroundings, instead make yr character impact yr surroundings”
– Rachel Scott(17 yr old killed in columbine shooting 1999)http://rachelschallenge.com/Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
I didn’t realize that people question whether positive cash flow is possible or not until recently. We see positive cash flow on a regular basis in Indiana.
One example: I have a home I purchased two years ago for $60,000 that brings be a positive cash flow of $250/month. I have never spoken to the tenants and have no reason to do so. They pay their rent on time every month and we deposit it.
As I told an investor in from California looking at our area, people are snowed into believing it isn’t possible and therefore they purchase properties in areas where there may be incredible apprecation, but you’ve got to be able to deal with serious amount of negative cash flow. I personally can’t afford to be in the hole $2,000/month on a duplex, like many investors are doing in different areas of the US.
So, yes there is cash flow. There are great properties to go along with it and as long as you’re willing to do your research and look in other areas of the world or country, you’re likely to find some pretty good stuff. I know that seems risky, but not as risky as purchasing a property that is digging into your pocket every month in negative cash flow.
Derek Guyer
http://www.landchasers.comWe all know how well online polls work…
The securities commision and the stock exchange did a full look into australia investment in interest only investment, shares, property trusts and full residential outright purchases. The returns were extremely surprising. After inflation interest only investment made 1%. Full residential was about 3% and Shares and trusts were 6%.
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