Analyzing Cash Flow
In this Show
When you buy a property, you need cash flow. There is a reason why cash is called king. You want big cash flow every month when you make an investment. But how do you analyze the cash flow of a property?
1. Income — VIP parking, laundry…anything that people need and want that you can charge extra for.
2. Expenses — You’re going to have payroll, landscaping, utilities, insurance, repairs, taxes…these are all things that you can’t get rid of.
3. Debt — Principle and interest on the loan.
4. Cash Flow — Are you making any money on the deal or not?
If it’s 1 door rent it, if there are many doors, own it. Time and cash flow = appreciation. If you buy the right property and make the right moves with it, time and cash flow will get you a 2X to 3 X return—guaranteed.