Think your real estate investment decisions should focus on potential appreciation? Think again.
The real estate market is in such flux that it’s impossible to know when – or if – appreciation in value will come. That’s why today’s wisest investors are most interested in positive cash flow properties.
So, how do you know which properties offer the greatest cash flow potential? You might be surprised to learn that moderately priced properties generally offer quicker, steadier returns than their more luxurious, higher-priced counterparts.
Let’s look at some examples:
Scenario 1 – $ 150,000 cash equity
You could buy three moderately priced ($160,000 each) townhomes with down payments and closing costs of $150,000 total. Your positive first-year cash flow per unit will be $205 per month, multiplied by three rental units, for a total of $615 per month or $7,379 annually.
Over the course of 10 years, you’d realize a positive cash flow of approximately $119,228.
Scenario 2 – same $150,000 cash equity
You could use your $150,000 cash to cover the down payment and closing costs on a fancier, $500,000 townhome. Unfortunately, the rent you can command will be $700 per month less than your mortgage and operating costs for a negative first-year cash flow of $8,401.
At the end of the 10-year period, you will have lost approximately $59,998.
Do the math: That’s a difference of $179,226 between the MPP positive balance and the FPP negative balance.
The moral of the story? Cash-flow focused buyers who invest in Moderately Priced Properties will collect rent checks, pay the bills, and watch their bank accounts and property portfolios grow. Meanwhile, those who invest in Fancy Prize Properties will have to dip into their savings to cover the bills while they hope for an eventual appreciation in value.
Elite Wealth Creators have been involved in the property and finance industry for over 20 years. Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance
http://www.
sales@elitewealthcreators.com
1800 GO ELITE
The real estate market is in such flux that it’s impossible to know when – or if – appreciation in value will come. That’s why today’s wisest investors are most interested in positive cash flow properties.
So, how do you know which properties offer the greatest cash flow potential? You might be surprised to learn that moderately priced properties generally offer quicker, steadier returns than their more luxurious, higher-priced counterparts.
Let’s look at some examples:
- A Moderately Priced Property (MPP), such as a $160,000 townhome in San Diego, might generate monthly rent that’s $205 greater than your mortgage and operating expenses. That yields you a $2,460 positive cash flow per year.
- A Fancy Prize Property (FPP), perhaps a $500,000 glitzy, downtown townhome, will likely yield a rent payment that’s as much as $700 less than your monthly mortgage and operating expenses. That loss translates into a negative cash flow for the year of $8,400.
Scenario 1 – $ 150,000 cash equity
You could buy three moderately priced ($160,000 each) townhomes with down payments and closing costs of $150,000 total. Your positive first-year cash flow per unit will be $205 per month, multiplied by three rental units, for a total of $615 per month or $7,379 annually.
Over the course of 10 years, you’d realize a positive cash flow of approximately $119,228.
Scenario 2 – same $150,000 cash equity
You could use your $150,000 cash to cover the down payment and closing costs on a fancier, $500,000 townhome. Unfortunately, the rent you can command will be $700 per month less than your mortgage and operating costs for a negative first-year cash flow of $8,401.
At the end of the 10-year period, you will have lost approximately $59,998.
Do the math: That’s a difference of $179,226 between the MPP positive balance and the FPP negative balance.
The moral of the story? Cash-flow focused buyers who invest in Moderately Priced Properties will collect rent checks, pay the bills, and watch their bank accounts and property portfolios grow. Meanwhile, those who invest in Fancy Prize Properties will have to dip into their savings to cover the bills while they hope for an eventual appreciation in value.
Elite Wealth Creators have been involved in the property and finance industry for over 20 years. Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance
http://www.
sales@elitewealthcreators.com
1800 GO ELITE
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