Investing in rental properties is a great way to create cash flow and have multiple income streams that you generate every month. In this interview by John Golden, real estate investment expert Lane Kawaoka advises you how to enter this business and start earning passive income for yourself.
This interview will help you find out:
- The advantages of rental properties investment
- How to choose the right property to invest in
The Advantages Of Rental Properties Investment
As opposed to traditional ways of accumulating wealth such as the stock market, or using a robo advisor to automate your pension, this business allows you to get real cash every month, and not just uncertain digital value. Once you find the perfect property to purchase, you should expect only a few hours of work per month, everything else is taken care of by the property manager you hire. It is not an easy and get-rich-quick type of business, but if you do it the right way and surround yourself with the right people, it can be simple. No matter the circumstances, people will always need a place to live, so it is a stable and secure marketplace.
Periodically, problems like evictions, thefts, breakings, or plumbing issues can emerge. Because of this, it is good to try and diversify your holdings. It is why you invest for cash flow, so you can build up cash reserves to bridge the gap when needed. On average, if you run it right, you should see a 20-30% return on your money day one, it is just the matter of getting more of it.
How To Choose The Right Property For Investment
When it comes to renting, if you don’t want to gamble with your money, you should avoid the most attractive locations and houses. If you want to have a stable profit, the most important thing is the rent to value ratio. These ratios can’t be found in primary markets like New York. Instead, target secondary and tertiary markets, such as Birmingham, Atlanta, or Indianapolis. Opt for good B class houses, in decent areas, but not the best and most desirable ones. It should be something that the majority of the population searches for and can afford.
John is the Amazon bestselling author of Winning the Battle for Sales: Lessons on Closing Every Deal from the World’s Greatest Military Victories and Social Upheaval: How to Win at Social Selling. A globally acknowledged Sales & Marketing thought leader, speaker, and strategist. He is CSMO at Pipeliner CRM. In his spare time, John is an avid Martial Artist.