zackchildress-tips-for-what-to-look-in-real-estate-business

Zack Childress’ Tips for What To Look In Positive Real Estate Business

Investing in positive real estate cash flow property involves the act of purchasing property that creates a surplus ore-tax cashflow. The cash flow is the foundation of any successful investment especially those that are starting out.

Zack Childress strategies to finding positive real estate cash flow property

  • Look for high yielding suburbs
  • High yielding suburbs are areas that give a high return on the invested capital. Look for suburbs in your neighborhood that give about 10% and above in rental returns and about 30% in the resale profit on the amount that property was bought.

  • Buy properties that are 20% or more below the median price in the area
  • This is what is called a good deal. Look for property that is below the market price and then rent or sell it at the market prices. It gives you a larger profit margin than any other property in the area.

  • Target properties bringing multiple incomes
  • Properties with more than a single source of income enables you cover the cost of maintenance and a bit of the money invested during the buying of the property. For example, properties with a granny flat.

  • Renovating and adding value to the property
  • Renovating the house adds some value to the piece of property. A valued added house is able to fetch some extra rent due to better features and quality service. You can increase rents for the existing tenants after renovating the house.

  • Targeting student accommodation
  • Student flats have some of the highest returns owing to the few needs, smaller units, and high occupancy rates. If there is college opening a branch in the area, consider investing in hostels and other types of student accommodation. Students also have little problems experienced when managing regular tenants.

    Zack Childress-The process of buying positive real estate cash flow property
    • Search for multiple properties in different areas
    • Research and eliminate different areas depending on average lag in selling property, capital growth rates, and clearance rates.
    • Estimate value of the property using the latest sales data and data from comparable properties
    • Analyze the property cash flow and the likely growth in the long-term. Make a forecast of the income that the property is likely to bring in the long-term.
    • Establish the price at which you are able and willing to pay for the property based on the research that you have done above. Aim at negotiating for a good deal as it increases the return on your investment

    Watch Video: Positive Real Estate Business

     

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