#4: Paula shares a confession. Then she redeems herself by sharing her gross monthly income.

(Yeah. Listen from the beginning).

Full show notes at http://TheMoneyShow.co/04

There are a variety of ways to invest in real estate:

• Flipping houses
• Buy-and-hold
• Tax liens
• Wholesale
• Income-producing rental properties (commercial and residential)

Paula loves residential rental properties.

Ask yourself: Do you want capital appreciation or cash flow from rental income?

Paula puts a few guidelines in place to determine if a property is right for her.

First of all, the monthly rent needs to be at least 1% of the total acquisition price.

Example: A $100,000 home would need to rent for $1,000 a month. Why? Because roughly half of the rent is gobbled up by operating overhead:

Taxes, Insurance, property management, and repairs/maintenance

Paula offers much more valuable information in this episode and on her blog, AffordAnything.com.

Learn more about your ad choices. Visit podcastchoices.com/adchoices