Cash Flow for an Investment Property

By: Diane Tuman, Content Manager | October 17, 2007

Today’s Wiki Wednesday Feature: Cash Flow for an Investment Property

Owning investment property can be a tricky business — especially for newbies. In today’s Wiki Wednesday feature, Kimbrough Gray, a Realtor in Austin, Texas, For Rent wrote an article in the Real Estate Guide about what to look for when buying investment property. In Kimbrough’s words, “Running the wrong numbers (before buying an investment property) can make the difference of making $500 or losing $1,000 per month.”

If you’re interested in acquiring investment property, his high-level rundown of what numbers to check makes you appreciate what a landlord has to go through: taxes, mortgage interest, vacancy costs, insurance, advertising, utility costs, property management costs, and the biggie: maintenance costs.

And even if the numbers show you might not be cash-positive each month, you could still put money in your pocket from tax benefits or if the property is located in a hot area, where appreciation is a gimme.

Ed: Wiki Wednesdays is a weekly feature that highlights helpful or interesting articles from the Real Estate Guide.

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Categories: Real Estate, Wiki Wednesdays, Zillow

Comments

5 Comments so far

Investment Property Sales on February 9, 2008 8:15 am

You raise some good points
Bruce on March 30, 2008 10:19 pm

Running the right numbers is crucial to a long term success in this game. There are a number of free property investment number crunching spreadsheets available on the web, so there is no excuse really for not doing a little maths prior to making an investment purchase.
Investing in foreclosures on March 31, 2008 1:31 am

Thanks for the interesting read.

You know, i found this interesting house flipping online game. It teaches you how to buy property, fix them and then turn around and sell them for profit.

It’s called the “Flip That House Cash Flow Game” ( The Link Is Here

I think the best way to learn about this kind of investment is by simulation games such as this. JMO
Raichand Properties on April 18, 2008 12:26 pm

In London it’s caled BMV( Beloe market vakur properties) Congratulations you just SOLD your Property
investment property on August 21, 2008 7:31 pm

There is another guy that writes on this subject, and he does it really well. His name escapes me at the moment though. I am really looking forward to your next post.

Done a brilliant work!