Cash Flowing Rentals- Is it possible in the Current Market?

[Heather Lambert]

What are some strategies to make rentals cash flow with current rates?

[Edward Adams]

Yes, it is possible to generate positive cash flow from rental properties in the current market, although it may require some creativity and flexibility. Here are some strategies that can help you make rentals cash flow with current rates:

1. Choose the right property: Look for properties that have a good rental history and are located in areas where demand for rentals is high. You should also consider the purchase price, as well as the ongoing expenses such as property taxes, insurance, and maintenance costs.

2. Increase rent: Consider raising rents to bring in more income. However, make sure that you are not pricing your rental too high that it becomes unaffordable and leads to tenant turnover.

3. Reduce expenses: Look for ways to cut expenses without sacrificing the quality of the property. For example, you could hire a property management company that can handle maintenance issues, utilities, and other expenses more efficiently.

4. Invest in renovations: Making improvements to the property can help you increase rental rates and attract better-quality tenants. Consider making cosmetic updates such as fresh paint and new flooring, as well as more significant renovations such as adding an additional bathroom or upgrading the kitchen.

5. Refinance: If you have an existing mortgage, refinancing at a lower interest rate could help you reduce your monthly mortgage payment and increase your cash flow.

6. Consider short-term rentals: Depending on your market and the demand for short-term rentals, you may be able to generate more income by renting your property on platforms like Airbnb.

7. Partner with others: Consider partnering with another investor to purchase a rental property together. This can help you spread the risk and reduce your upfront costs.

Overall, the key to making rentals cash flow in the current market is to be flexible, strategic, and creative in your approach. By finding the right property, reducing expenses, and increasing rental income, you can generate a positive cash flow from your rental property even in the current market.