Finding Cash Flow Positive Property
It can be a tough ask finding cash flow positive property, especially in the bigger cities around Australia.
There is also the long running argument about Cash Flow Positive properties vs High Growth Properties. Usually cash flow properties don’t get anywhere near the growth of inner city and coastal properties. From the examples I’ve seen, high growth property usually wins in the long run and is recommended to most younger to middle age people who still have many years in the work force to help cover the short fall.
Cash Flow property is still a great option for everyone and especially the older soon to be retired people who need cash flow immediately. Cash flow property is also a great option for property investors who are at the point where they are struggling to get bank approval for any more houses.
If you know where to find cash flow property’s half your battle is won. Your only problem then is getting enough of them to beable to quit your day time jobs and live off them.
Outer city suburbs and regional centres (not small towns - too risky) are usually the best bet. Also make sure there is long term employment around these areas before you buy (no one to rent to and no buyers around = bad news for your cash flow and growth).
Rachel Barnes and the Reno Kings have got together with their top 10 tips for finding cash flow positive property’s:
- Know what you’re looking for!
- Debt funded Positive Cash Flow options
- Check Statistics - eg Australian Property Investor Magazine
- Trawl The Net
- Use Google Earth / Google Maps
- Talking to all Agents in the Area
- Talk to the Property Managers
- Network with other Investors
- Make ‘Ridiculous’ offers
- Look for ‘Unusual’ properties
To read more about the above top ten list click here to read the full article on the Reno Kings website.
Remember that if you purchase a ‘High Growth’ property that after 3 to 5 years it will most likely become cash flow neutral or cash flow positive anyway. That will then give you the best of both worlds!
Happy Investing and do what suits you and your investment style and goals! 