Milwaukee, WI · Member since 2012 · 20 posts · 0 votes
Hello all,
My name is Michael and I would like to own a REI within two years.
What are some of the trick successful people as yourself seek when looking for cash flow positive properties? It is all in the negotiating? When I view current prices of potential properties I would like to buy, I dont see how I could be cash flow positive unless I could negotiate a deal. Is their an easier way to locate properties that are cash flow positive that are foreclosures?
Can I have some beginner tips? Please make note that my mother currently inherited a 4 family rental unit 10 years ago from my grandma and great uncle. So in helping her, I have seen some of the head aches that can occur while operating a business. She was lucky to inherit without a mortgage.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
14y
Best advice I can give for such a broad question is to read landlord threads here and when you have a specific question ask it. A book could be written on tips. Good luck....
Investor and Architect · Ramsey, NJ · Member since 2010 · 305 posts · 84 votes
14y
Learn the ratios of what makes a good deal. Lots of posts in here about that. Search terms like Cap rate, Cash on Cash Return, 50% rule, 2% rule, APOD. You may or may not have looked at your mothers house this way but assuming you have not you can take all the income and expenses, put it on a spreadsheet and start to analyze it. Basically you'll be making an operating statement. There are programs that do this for you but I think you'll learn more if you do it yourself on excel.
Real Estate Investor · Toronto, Ontario · Member since 2010 · 413 posts · 114 votes
14y
In high price areas where it is hard to cash flow, many investors in Toronto look for opportunity in student housing. Allows you to get more income with your property and might be able to get you to cash flow. I see this a lot in Toronto, prices here are very hard to cash flow as well.