All Forum Posts by: Marco Santarelli

Run the numbers and calculate your Cap Rate and net cash flow. If those numbers are higher for you than investing in some other rental property (in or our of state) then it might make sense.

You should also consider where you want to live. Don't move from your ideal home location if that will make you unhappy. I always tell our investors to "live where you want, and invest where it makes sense."

Hi T Pierce,

You may be overlooking the larger picture, and the most important factor in my opinion. There are eight major benefits to investing in residential income property as I've outlined in the free report on my website ("Building Wealth with Real Estate"). Cash flow is certainly one of them, and that will increase over time until the mortgage is paid off which would then be pure cash flow.

However, one of the biggest benefits of owning rental property is the fact that your tenant is paying off the mortgage for you. The cash flow you collect each month can give you a decent rate of return, and in many cases better than most other investments out there (i.e. stocks, bonds, and mutual funds).

Also, don't get hung up on the "50% rule" and "2% rule" because that does not work the same in all markets. It's simply a general rule of thumb.

Feel free to contact me with any questions.

Continued success!

Welcome to BP Jimmy Chim. The community is filled with knowledgeable people, so jump in and ask questions.

Continue success!

Hi Lawrence Ratliff,

Welcome to BP. Good people and good info here for you. Look around and ask questions -- It's a fast way to start learning.

Continued success!

Hi Luke MacIntyre,

It's nice to see that your thinking about your investment strategy. Now is the time to be executing on it, not as you get closer to retirement.

We deal with this every day with investor clients. I've written a free report called "Building Wealth in Real Estate" which can be found on our website. I lay out a 10-year plan that can be adjusted up or down to reach your goals within the time frame you want.

Given what your doing in terms of saving for investment purposes, you are well on track to retire a millionaire with thee cash flow to support your retirement. You just need to follow through on a good plan, and invest in the areas that make the most sense.

Continued success!

Ali Boone: Hey Ali - I will contact you within the hour.

Will Barnard: Hi Will -- Good point! Just so everyone's clear, our website presents our property numbers in two (2) ways (raw and detailed). The raw numbers are what you see above without vacancy or repairs. The detailed cash-flow analysis includes everything including future assumptions such as potential appreciation, rent, and utility increases.

Thanks for pointing it out! :)

Welcome Dan N.

Jump right in. There's a lot of Texan's on BP. :)

Continued success!

Feel free to contact me with any questions or for additional information.
 
 

It's true that these cyclical markets will give your far better returns when measured in terms of (potential) appreciation. If that's what you're looking for then you may have to look beyond your backyard. "Greener grass" is a matter of perspective and your investments goals.

We don't sell based on appreciation, however there are markets prone to greater appreciation gains than other markets. If a client is looking for better long-term appreciation we show them the markets we've researched that will provide them with that growth WHILE balancing that investment with positive cash-flow so the property pays for itself.

You want to do the same. :)

Marco Santarelli

Hi Adam Craig,

You're right -- it's hard to last for years in this business without a good reputation and a history of success.

Keep in mind that not all turnkey providers (like us) are property managers as well. Property management is a very important part of your success and it required specialized knowledge and experience. They need to be very good at what they do; therefore a company that's a "jack of all trades" may also be a "master of none". (I would never want to manage my own properties.)

Finally, we start with our client's investment objectives before looking at markets, neighborhoods, and finally specific properties. I suggest you do the same (if you haven't already). I like to take a "guided tour" approach to investing so you can see the entire forest, not just trees.

Continued success,

Marco Santarelli