Real Estate Investing with Coach Carson #371: I Wish I Knew THIS About Rental Cash Flow 10 Years Ago
6 snips
Nov 25, 2024 Rental properties can feel like a tumultuous roller coaster when it comes to cash flow. The discussion highlights the challenges of vacancies and repairs, and the critical need for cash reserves. Various strategies are explored to stabilize income, including smart property selection and leveraging job income to fill gaps. Over time, a buy-and-hold approach reveals long-term benefits, ultimately allowing properties to appreciate like fine wine. Real-life examples underscore the potential for increased cash flow through refinancing and careful management.
AI Snips
Chapters
Transcript
Episode notes
Cash Flow Roller Coaster
- Rental properties may not produce consistent monthly cash flow as initially expected.
- Negative cash flow months and fluctuations are normal, especially early on.
Cash Reserves
- Build cash reserves to cover vacancies, repairs, and capital expenses.
- Start with $5,000 minimum per property, ideally aiming for 3-6 months of expenses.
Multiple Properties
- Diversify rental income with multiple properties or units to offset vacancies.
- If one unit is vacant, income from others can help cover expenses.