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Frequently Asked Questions
What is the process you follow to identify positive cash flow properties?
We research markets with high rental demand, analyse properties for favourable price-to-rent ratios and low operating costs, and perform financial analysis to ensure positive cash flow. Our team utilizes real estate databases and partners with local experts to provide comprehensive options, ensuring we find the best positive cash flow properties for our client’s investment goals.
How do you analyse the rental income potential of a property?
We analyse rental income potential by researching the rental rates of comparable properties in the same area, evaluating the property’s current rent and vacancy rates, and estimating future rental rates based on market trends and demand.
How do you ensure that the properties you recommend have low operating costs?
We analyse the property’s operating expenses, such as property taxes, insurance, maintenance, and utilities, and compare them to the potential rental income. We also consider the property’s age, condition, and energy efficiency to estimate future maintenance costs.
Can you provide examples of high rental demand markets you've researched in the past?
We have researched and identified high rental demand markets in various areas, including but not limited to urban centres, student accommodation, and popular tourist destinations. Specific examples depend on the client’s location preferences and investment goals.
What is a favorable price-to-rent ratio, and how do you determine it?
A favourable price-to-rent ratio indicates that the purchase price of the property is low relative to the rental income it generates. We determine the ratio by dividing the property’s purchase price by its annual rental income.
How do you factor in potential for capital growth when analysing properties?
We analyse the property’s location, the local real estate market, and economic indicators to estimate the property’s potential for capital growth. We also consider factors such as new development projects, infrastructure improvements, and changes in the job market.
What kind of financial analysis do you perform to ensure positive cash flow?
We perform financial analysis by estimating the potential rental income and subtracting the operating expenses, including property taxes, insurance, maintenance, and utilities. We also consider mortgage payments, financing costs, and other expenses to estimate the net cash flow. We compare the net cash flow to the client’s investment goals to ensure positive cash flow.