Positive cash flow properties can be very difficult to make a profit on if you don’t know what you are doing, and in a lot of cases people out there really do not know what they are doing.
When it comes to property investment a lot of people think that it is easy because all they have to do is buy the property and invest, find a tenant and then watch the cash flow just roll into their bank account, but what you need to realise before you get into the property investment market is that isn’t the case at all.
Flipping properties has become a big deal in recent years because there are a few success stories where a people have made money on property invest, quite a lot of money, and because society is driven by money everyone wants to get in on the action.
What most people don’t realise when it comes to properties and positive cash flow is that these people either do this on more than one property, taking a risk every time they invest – it is a lifestyle, not a one off – or they are professionals who know the property market inside out.
As a result you should be more aware and realise that there are certain types of properties that yield more cash flow than others, so if you are in the property market make sure you are looking out for these kinds of properties.
Certain types of properties near major infrastructure are definitely worth investing in. In fact if you find one these properties at a good price then you should certainly consider it because they are almost impossible to come across.
Why? Mainly because with major infrastructure like hospitals and universities the people who work or study, like students, nurses and doctors, drive the price of rent and property up further than it would be normally. As a result you stand to make money that supplements your income from a positive cash flow property because the demand is higher in these areas than most areas.
Renovating a property is one the best forms of positive investment in cash flow properties, as long as you are willing to work hard on the renovation.
The basics of positive cash flow on properties which need renovating is to spend a small amount of money, as small as you can, on the renovation and then make the money back through the rent. This can again depend on where the property is located because you can’t demand the kind of rent in small towns that you can in cities, for obvious reasons.
Clever property investment is to buy a building as one big unit and then divide it into sub divides for extra cash flow.
For example split one unit into apartments and have five or six incomes instead of one.