Cash flow real estate investing is when you buy a property, like a house or an apartment, and then you rent it out to other people. The goal is to make more money from the rent than you have to pay for things like your mortgage interest, taxes, and repairs. If you can do this, then you will have a positive cash flow investment and you will be making money from when you take ownership.
There are a few things that can affect how much money you make. For example, the location and condition of the property are important. You also need to think about the amount of rent you charge and the expenses of taking care of the property. Here are some key factors that I use to assist myself in increasing the rents and ensuring my investment portfolio performs well:
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Buy a property in an area where people want to live and are willing to pay more in rent, areas with good schools, public transport, and jobs are a great starting point.
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Make improvements to the property, like updating the kitchen or bathroom, to make it more attractive to renters. These improvements will set your property apart from the competition.
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Slowly charge more rent, however, be aware of not overpricing the rental, which will scare a tenant off. I normally work in increments of $5 – $10 per year if required.
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Rent out additional space, like a granny flat or individual rooms for extra income. This can become very lucrative, however much more time consuming to manage multiple tenants.
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Rent out the property for short-term stays through platforms like Airbnb (this requires further learning). In most areas there is room for homes that offer short term stays, you just have to understand the market well.
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Understand how to calculate your ROI based on your purchase price, for example if you buy something for $500,000 and it rents for $25,000 PA it has a 5% ROI.

Disclaimer: The information provided in this article is solely the author’s opinion and not investment advice – it is provided for educational purposes only. By using this, you agree that the information does not constitute any investment or financial instructions. Do conduct your own research and reach out to financial advisors before making any investment decisions.