Perhaps the
biggest mistake we often see in this part of the property cycle is investors
shifting their focus to cash flow.
I have
spoken previously about why I feel cash flow-positive property is a con.
In short, a
property is neither cash flow positive nor negative, it all comes down to the
way that it is financed.
By changing
inputs like deposits, interest rates, and the way a loan is structured, you can
change the outcome.
One thing
you should not change or compromise on is the location and capital growth of a
property.
Cash flow
will keep you in the game, while capital growth can be life-changing.
A capital
gain of 20% - 30% in some locations over the last year would have taken most
people many, many years to save.
An
additional $5,000 or $10,000 additional cash flow simply does not compare.
RealRenta has all the tools that a property manager has but for
less than ¼ the cost of a property manager.
Join now and the cost is less than a cup of coffee a week to manage your
rental property.
RealRenta also has a free vision, so why not check it out.
Jason Gwerder
Thursday, 10 August 2023
