My Monthly Cash Flow Report – May 2016

Welcome to my May 2016 cash flow report! Each month I document how my rental properties (RP) are performing in order to track my monthly cash flow. I share both the good and the bad, as well as any lessons learned from investing in out-of-state rentals. For these income reports, I’ll report everything as they occur. That means if no rent came in, there will be a big fat zero. The same goes if there were no maintenance issues for a given month. This is different from when I analyze a potential property … continue reading.

Buy and Hold Numbers: Cash-on-Cash Return

Cash-on-Cash Return

When you’re evaluating a rental property, it’s not enough to just calculate the cash flow to see if it’s a good deal or not. One can always put a larger down payment, reducing their debt payment, and therefore increasing their cash flow. When looking at a buy and hold rental property, an investor needs to consider what the cash-on-cash return is for a property. In this post, we’ll dive into how to calculate the cash-on-cash return and how this metric varies based on whether an investor uses financing or not. Recap … continue reading.

Buy and Hold Numbers: How to Calculate Cash Flow

This post is about calculating cash flow. Don’t worry, there’s no fancy math here. I’ll get into more advanced cash flow and analysis in future posts. For now, the only prerequisite is some simple arithmetic that you learn in grade school. A common misconception on calculating the cash flow on a rental property is to think that it is simply the rent minus the mortgage (Principal & Interest), Taxes, and Insurance or PITI for short. If this is how you’re calculating cash flow then you will get badly burned. There are many more expenses that … continue reading.

401k Loans to Use in Real Estate Investing

If you work for a company, then you probably have some kind of company sponsored retirement plan. It may be in the form of a 401k or a 403b and over the years you may have contributed a pretty sum of cash. Cash that you can’t touch without incurring hefty fees until you’re at least 59 1/2 years old. For some of us, that’s a long ways away. Well, there’s a way you can access some of that cash without being hit with those early withdrawal penalties and you don’t have to wait till retirement age! … continue reading.

My Monthly Cash Flow Report – April 2016

This month was full of issues. So let’s jump right into it. RP#1 A lot happened this month with Rental Property #1. Here are the main points: Tenants extended their lease by another year and raised rent to $1200! Lease renewal incurred a 25% management fee ($300) Major deck repair First, The Good News The tenants extended their lease another year and in the process, we raised the rent up to market rate. They’re now paying $1200 a month. My PM charges a 25% renewal fee so $300 was taken out this … continue reading.

How To Never Forget The Streets You Drive When Visiting a New Market

I’m riding passenger side with my realtor who’s just picked me up from the hotel I’m staying at. I’m scouting out a new market and it’s my first visit to this city. I’ve done a lot of research upfront and have my notebook in hand with a map printed out on my lap. I feel prepared. We begin our drive and naturally start to get to know each other better while also talking generally about the city. The conversation may sound something like this. Me: So are you originally from <insert name> … continue reading.

Sayonara Japan and to Rental Prospect #3.

Must all vacations come to an end? The goal someday is to have enough passive income so that my wife and I can live in Japan not as temporary tourists, but as permanent residents. It’s always been a dream of ours to live in a foreign country. We both grew up bilingual and want our children to learn another language by being immersed in another culture. Until our passive income is high enough to cover all of our expenses and then some, we’ll continue to visit other countries as tourists. Much to … continue reading.