How to Find Cash Flow Properties
How to Find Cash Flow Properties
Finding a great cash flow property will take some work as it will not magically drop into your lap but you can find one. You need to be smart when purchasing property as banks are not as free with their loans as they once were and are tightening down on any loan applications. The following detail a few ideas to find some great cash flow properties.
You can buy a cash flow property to rent that has a high yield. These types of high yield cash flow properties tend to be in regional areas so you may not be able to find one in your town. In general a high yield cash flow property is one if you were to rent that you receive 10% profit on the rent. Such examples and properties can be found widely in Australia.
You can use a strata title on a block of real estate. For example you can buy a block of 4 units and then sell of two or three of the units to pay the mortgage. This smaller mortgage will increase your cash flow as most of the work involved will be getting approval for strata title.
You can purchase a piece of real estate that is close to a college or university and rent the rooms out to college students. Many colleges are experiencing a housing shortage as the vast majority of schools do not have any land that they can expand on. You will need to have locks on each of the bedrooms and furnish the common area but these types of properties can be good cash flow properties.
You can purchase real estate that is a large plot and then sub divide it to pay down your mortgage. You may have to get approval form the state or town to do this but it is a good option. If you are renting out the property then this subdivision would also increase your rental yield.
