This was an audience question submitted by JoanP, and thank you very much!
Cashflow is an important part of real estate investing, because when you are earning more than what your monthly costs are, now you’re in business. Monthly cash flow is the amount of net cash left over after covering mortgage, repairs, taxes, insurance, etc. The carrying cost for the property. The big question is: How much is a good enough cash flow for an investment to be worth it? Newsflash – its a personal choice depending on your goals.
$350 is more than an acceptable amount for cash flow. This webisode goes into the the nuances of how to measure an investment as worth it by looking at the numbers. Some people are excited if the amount is $100, let alone more than that. I definitely look at monthly cashflows, but since I have different lines of credit with 6 month free financing, my cashflow changes in 6 months blocks, usually dropping off once Ive paid an installation off.
Thank you,
22 Comments
Please let me know if you like the new intro 🙂
So you wouldn’t pay more in repairs than the cost of the house?.. just making a comment/question so everyone will know!… you’re looking prettier each time this is doing you good… you go girl!!!…
No, I WOULD pay more for repairs than the house, sometimes that happens in this price range. For instance, 13k for the house, 25k for the repair. Each house is different though.
Great info! Cant wait for the walkthrough video!
Thank you so much for responding to my question Lisa! I greatly appreciate it amd it keeps me motivated!!
Great info! Have shared your vlog with 3 of my coworkers today.
Thank you Pam! Any feedback on what more they would like to hear and see?
I invest in low end properties. My family think Im nuts!! lol I would like
to say you have some great motivating information!! Keep us the good work
sister!!!
this might be my new favorite youtube channel
Pretty sweet side jump, that…
You talked about putting your own money into the investment properties, is
this because the houses are in your name or are they in an LLC’s name? This
question also applies to the lines of credit.
I just have a concern that my llc will have no credit and I have good
credit but I don’t want to muddy the waters between my company and my
personal.
I have some properties in LLCs and others in my name. I made this decision for ease of financing, so the property with the greatest potential for equity growth I kept readily available to get financing with. Not saying that that is the ultimate solution, but I chose that for banking reasons, etc.
landonhilsenbeck
40K houses? Where is that?
Thank you for all the videos you have posted. I am learning so much and now
know that I still have a long way to go. I currently own 2 homes both
purchased at $25,000 and I put about $7,000 in rehab. Both homes are rented
out at $625. Do you think this is a good profit?? Also I am really hoping
to quit my full time job after supplement my income 2X do you think this is
a good idea have you done it yer??
I’m new to your channel. I saw this page last night into early am hours.
I’m on your site now and I’ve sent you to family and friends. I’m so
excited. We want you to walk us through our first property. You’re worth
it. Thank you for this page I’m very grateful. Prayer works♡♡♡♡♡♡
hmm this is very interesting video, very stimulat…OH MY GOD 1:53 GHOST
DOOR!!!
do you have a video on how to pick a property management company or person?
I just subbed and liked
Lisa Im loving your videos, its great to see your passion and the
motivation you put into sharing this information. It definitely keeps us
viewers motivated and determined to follow your blue print. Thanks and keep
them coming. Also, (just in case I missed it) did you post your walkthrough
video yet?
Pislik…
You mention staying under $40k, which includes cost of home and repairs. I
was wondering if closing costs are included in the $40k?