The best-kept secret among investors in the real estate market is where to find positive cash flow properties. With investing in the real estate market constantly increasing in popularity, more and more people are learning just what a great investment it really is. Without a doubt, great opportunity exists in the real estate market for profit.
The truth is that this type of investment property is not very hard to find. If you are aware of the ways to locate positive cash flow properties, you will quickly notice that they are all around you.
Where to Look
It is no secret that the real estate market fluctuates in economic cycles. Look for properties in the commercial center of you chosen location when there is a boom in properties to establish your positive cash flow.
Mining towns are another place you may want to look for positive cash flow properties. However, use caution when you choose a property that is located in a mining town to avoid eventual pitfalls.
Another way to create positive cash flow is by renting out all of the rooms of your property, similar to a college dormitory. If your property is located near a university or college, you will be able to create a positive cash flow by collecting more in rent than you pay for the entire property.
The more research you do, you will discover that there are a great number of ways that you could find positive cash flow properties. Remember that in order to gain profit with this type of investment, you need to have working knowledge of the real estate investment business as a whole. The first investment that any investor should make is an investment in oneself. Take the time to learn how to evaluate a property and determine the true value before signing any contracts.
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I have friends that have invested in a town 20 minutes from the Toowoomba CBD named “OAKEY” in Qld.
The town has a Toowoomba City Council Service Centre,Police station, Post office, medical centre, solicitors, hotels, motels, Bank Branches, auto tellers, parks and everything that you need in a town.
Properties have increased, but it is still possible to purchase a 3 bedroom home from $180K – $230K with high rental returns. I personally have seen where you can pay under $220K and get rent returns from $255 – $270 per week, this is not uncommon.
I hope this will assist some of your clients as its all about looking outside the box, as for minimal outlay you get a good return, as rental properties in Oakey, virtually are rented out as soon as they go on the market.
Kate.
Hi Sean,
Positive cash flow properties are the way to go. I live in Sydney and there are some crazy goings on in the rental market. It’s becoming more and more common for home owners to rent out each room in the house individually; even the lounge room.
Obviously, you can get much more money this way than by renting the house or apartment as a whole to a family or a couple. I think I have a lot to learn to use the real estate market for profit.
I did not know that it was legal to rent out all the rooms in a residential house. This opens up a whole new avenue as it makes a residential property similar to a hotel especially if your are doing a short term letting strategy.