While owning rental real estate can at times be a fun task to participate in, the reality is that property investors are really seeking good, positive cash flow from their units. So, how can you ensure that you’re moving in the right direction when it comes to incoming cash?
It all starts with how you purchase the property. For example, regardless of how much rent you can charge your tenants, if you have more money going out the door each month than you have coming in, then your “cash cow” will quickly turn into a white elephant.
With that in mind, you can limit your risk, while at the same time increasing your odds of financial success, by putting enough money down on the property to ensure it will be cash flow positive.
It is also imperative that you get a handle on your other expenses, such as insurance and utilities that you’re providing, and that you build the cost of vacancy and tenant marketing into your budget.
Another key item to keep in mind is that sooner or later an expensive emergency is likely to come up. For instance, air conditioners break, roofs get leaky, toilets don’t always flush, and trees sometimes fall – and because of that, property owners need to be prepared with a financial cushion – as well as additional time – to get things back to square one.
But, while being a landlord can be time consuming, the time that is spent on most of these tasks doesn’t have to be yours. By working in conjunction with a top-notch property manager, you can go on about your business, knowing that your investments are being well taken care of.
For more information on how working with an experienced property management team in the Orlando / Central Florida area can benefit you – and free up more of your time to pursue other opportunities – just give us a call today.