Can you cash flow more renting out a car than renting out house?

[Matt R.]

I see some investors on BP really focus on initial cash flow and when running a business this makes total sense. As a business experiment, I recently rented out a car I bought ( $3500 all in ) with a service like airbnb for cars. So far after two months this investment has cash flowed over $585 a month after all expenses with very little effort on my part. I still need to deduct wear and tear for tires, brakes, oil changes so maybe minus $50 a month?

Now in LA and SoCal rental cars are much cheaper than many cities. I think in most locations like Chicago this would be at least 50% to 100% more cash flow than LA. I do know a dude ( stock broker ) in Chicago that makes 6 figures with a dozen car rentals for example. These are just basic run of the mill cheap 5k cars too.

Can you do this too? Yes. Is this an easier way to create immediate cash flow? For some the answer could be yes as well.

My point is...if investing for cash flow is your main goal...there are multiple ways to create that with very small investments of time and money. Actually, a single family rental might be way down the list as far as total cash flow numbers go when the investment amount, liability and time are factored accordingly and realistically.

Good luck investing (cash flow creating) !

[J. Martin]

@Matt R.,

I met an investor in the SF Bay who has almost a dozen smart cars he has bought at auction over time and rents out on the peer to peer rental car platforms. He unlocks remotely, and people pick them up and drop them off all over San Francisco, sorta like a free-for-all zipcar service. 

He's crushing it!

Likewise, I'm doing the furnished rental business.

It is a business. Takes some time. Produces cash flow. 
Doesn't cost hundreds of thousands. 

But of course doesn't produce the big equity returns of the RE holdings. 
I use the cash flow to eat. And the equity to buy more RE :)

Good point!