Fixer Jay's Mom & Pop Millionaire Blog
Making money with real estate anytime, anywhere
SMALL PROFITS EVERYDAY
It’s not a sound idea to buy houses that don’t pencil out on the day you acquire them or shortly thereafter. There’s only one reason I know of to buy investment real estate-that’s to make money. If it can’t, then I don’t want it regardless of whatever else I may like about it.
I have been sucked-in on future value, higher potential, and pride-of-ownership many times but I learned my hardest lessons early in my career before I lost the ranch.
If your goals are investing for current income and long-term security with the least amount of daily management involvement, then my strategies will work for you. There are many things to learn and most of it should be accomplished during the early steps of your investing. On-the-job training is most effective.
When you acquire properties with financing, you should always insist on long-term pay backs, the longer tthe better, but nothing less than 10 years. Be very careful when you agree on the amount of the mortgage payments. Investment properties that have combined mortgage payments higher than 50 percent of the scheduled income are too risky, unless of course, you have adequate back-up resources to pay for negative cash flow.
I’m always satisfied when my mortgaged properties earn small positive cash profit consistently every month. Little profits allow me to buy more properties, which in turn provide additional little profits. First thing you know, little profits add up to big bucks.
It doesn’t happen overnight, but when you consistently keep the profits rolling in, you have the money to take on bigger and better opportunities when they present themselves.
There are several, good economic reasons, why I favor keeping a flock of rental houses, but the reason dearest to me is they furnish me with cash every month, come rain or shine!