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Investing in positive cash flow property involves the act of purchasing property that creates a surplus ore-tax cash flow. The cash flow is the foundation of any successful investment especially those that are starting out.
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Zack Childress’ Tips for Real Estate Business
Zack Childress strategies to finding positive real estate • Look for high yielding suburbs. • Buy properties that are 20% or more below the median price in the area. • Target properties bringing multiple incomes. • Renovating and adding value to the property. • Targeting student accommodation. • The process of buying positive cash flow property.
Look for high yielding suburbs • High return on the invested capital. • Suburbs in your neighborhood that give about 10%. • About 30% in the resale profit on the amount that property was bought.
Buy properties that are 20% or more below the median price in the area • A good deal. • Property that is below the market price and then rent or sell it at the market prices. • A larger profit margin than any other property in the area. • See also: Zack Childress Real Estate Investing Lead Generation Part 1 of 4: Communication
Target properties bringing multiple incomes • Properties with more than a single source of income enables. • You cover the cost of maintenance. • A bit of the money invested during the buying of the property. • For example, properties with a granny flat.
Renovating and adding value to the property • Renovating the house adds some value to the piece of property. • A valued added house is able to fetch some extra rent due to better features. • Quality service. • You can increase rents for the existing tenants after renovating the house.
Targeting student accommodation • Student flats have some of the highest returns owing to the few needs, smaller units, and high occupancy rates. • College opening a branch in the area, consider investing in hostels. • Students also have little problems experienced when managing regular tenants.
The process of buying positive cash flow property • Search for multiple properties in different areas. • Average lag in selling property, capital growth rates, and clearance rates. • Estimate value of the property using the latest sales data and data from comparable properties. • Analyze the property cash flow and the likely growth in the long-term. • Make a forecast of the income that the property is likely to bring in the long-term. • A good deal as it increases the return on your investment.