Buy a property that cash flows $2k over the PITA. I did that with a duplex in Oct. 2021. Monthly mortgage payment: $2,219. Rents: $2095 + 2095. Done. And a 3% interest rate.
@Whitney McNair Buy another property that had the ability to cash flow. And make sure my existing rents are fairly close to fair market value. And if they’re low raise them.
It depends - how much do you have at your disposal to generate 2k?
If you're broke - maybe OnlyFans or something similar.
If you're broke and want to maintain your dignity - then a side job. Deliveries for WalMart/Amazon etc. Holidays are coming up and they'll need extra help.
If you have money to invest - I'd personally invest in the stock market right now
The alternative to generating income is reducing expenses. A penny saved is a penny earned. Can you reduce expenses by 2k a month? Refinance?
It depends - how much do you have at your disposal to generate 2k?
If you're broke - maybe OnlyFans or something similar.
If you're broke and want to maintain your dignity - then a side job. Deliveries for WalMart/Amazon etc. Holidays are coming up and they'll need extra help.
If you have money to invest - I'd personally invest in the stock market right now
The alternative to generating income is reducing expenses. A penny saved is a penny earned. Can you reduce expenses by 2k a month? Refinance?
>A penny saved is a penny earned
That is the phrase but in reality a penny saved is worth more than a penny earned. Money earned is taxed. Typically the more you make the more you are taxed. On a penny earned, you may get 60% of the penny (depending on tax bracket and deductions).
This kind of strategizing will get you where you want to be. I would pick up a couple extra shifts at work and if that isn’t possible consider a career change. It’s crucial to work smarter and harder for maximum return. In my price range a $2,000 month net on a rental hasn’t happened early on with typical 10-20% down. I don’t do the mental gymnastics of inflating cash flow in my mind on a property that I put a large amount down or paid cash for. Another rental is a great long term investment but unless you have a chunk of cash lying around that probably isn’t a quick solution.
Basic answer, but to increase cash flow you have to increase income or reduce expenses.
I would focus on top line 1st then optimize the bottom line. Stage one is get to 95% occupancy and 95% of market rent. Whatever renovations or upgrades you need to get there are likely going to be good investments.
then spend about an hour going through every single expense on your bank statement and see where you can save money on any of those line items.
I know it's basic but 425 rental properties in doing this on a quarterly basis for every property had increased cashflow a ton over time