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Investment Homes For Sale – Investment Properties In San Diego – Are you searching for investment homes for sale giving positive cash flow today and not have to rely on future capital gains or future appreciation? This calls for a different mindset and different strategy to put cash in your pocket from day one.
What is positive cash flow? In its most basic terms, it is finding real estate investments that return more rent and tax write-offs than the debt payment and expenses i.e. more rent than costs, more revenue than expense.
‘Old School’ investors expect to gain their wealth through property appreciation and are willing to accept negative cash flows and bet on the ‘come’, on the future return. They accept the negative because “appreciation will more than pay you back”.
Another way is to invest more cash as down payment lowering the mortgage payment and thus lowering any negative cash flow to positive. But that takes more investment money away that could be used to buy more investments. More negative cash flow also impacts your ability to stretch your buying power to acquire more investments.
I do not agree. I believe you can buy positive cash flow investment properties in San Diego AND have appreciation with the least amount of cash investment.
How? You buy positive cash flow investment homes for sale in nice areas that will pull your investment value higher. This means buying the cheaper home in a more expensive, more desirable area. Buying more expensive homes typically means negative cash flow. The higher the rent the more people can qualify to own so you have a higher expense replacing tenants continually.
Because you are a long term investor buying investment properties in San Diego, you can afford to pay a little more and make up the difference in positive cash flow and long term appreciation. This is different from a ‘flip’ investor who must buy extremely low and sell quickly for a much smaller profit but faster return.
Part of this different mindset is leaving your emotions on the sidelines and be more pragmatic. In investments, sometimes ugly is beautiful. It is buying investment homes for sale by the numbers and some of the ugliest ducklings run the best numbers. Concentrate on positive cash flow; buy at the bottom rather than the top of the real estate cycle and you can live strong.
So how do you find these positive cash flow investment homes for sale? I focus on positive cash flow investment properties in San Diego that require the least amount of cash investment. Call me today to discuss your investment needs.