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How to Owned at least 5 rental properties in your life time easily?

There is a simple method to buy 1 property every 5 years, but how? For a post graduate form university, you need to plan ahead when you started your career around age 24. The simple method as below:

Save money for your first property

Once you start your career, on the first month you need to start saving $500 every month for the next 5 years. How much would you save?

Total saving = $500 x 12 months x 5 year

= $30,000

At the age of 30 years old, you have save so much money in 5 years, now you can buy a property that worth below $300,000 properties. $30,000 can be your 10% down payment for your 1st property. After that, rent it out for positive cash flow and you will having additional income.

Do not stop your saving after fifth year, keep continue your saving for $500 per month every month. The consistency is the key for your success.

If your 1st property having excess cash flow, you may added in to your saving to grow your investment fund faster. At the age of 35 years old, you will be buying your 2nd rental properties. Repeat the same formulae until you have acquired 5 units of rental properties. What age will it be? You will be 50 years old when you buy your 5th properties.

How much is the cash layout for 5 rental properties?

table unit

Your total cash outlay for your 5 units rental properties are just $150,000! Is it easy or tough?

The strategy is too slow?

Some of you may said that 5 years plan is too slow. Then you can increased the amount of your saving to any number. If your initial salary is high and able to save $1000 per month, then you will be doing faster and better compare to others.

What if I am too old at the age of 40 years old?

Maybe when you read this article, you are already 40 years old. I believe you have an established career and good income by then. You may have substantial saving in your bank as well. If looking at the table, at 40 years old, you should have 3 properties. In that case, you should be able to go out and hunt for another two more properties. You just need to catch up the plan that you may lost. Remember that the time is the essence for saving in early age.

Bear in mind that the above illustrated strategy is just a simple concept that can be employed by anyone. You are free to change any number to fit to your own individual pace. You can slow down by saving less or speed up by saving more. The ultimate here is to EARN as much as you can and AS FAST AS you can!

Article Source: ChatProperty

Many people will ask, is there any alternative to buy properties without money. The answer is YES, there are a lot of property investor applying this method. How? Click the link below to know more about property tips.

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The Benefits of Owning Rental Properties

Some of the benefits of owning these investment properties are:

  1. Monetary Benefits

Monetary benefits are those benefits that are directly measured in terms of the cost or returns on the property. The main interest here is how much money can be earned from owning a particular rental turnkey property. It can be divided into three basic benefits:

  • Cash flow: This is the money that will be left after settling taxes, debt service and operating expenses. It is the cash flow of the business and there are some things that could influence the income you can get from owning an investment property. Some of them include market competitions such as how developed is the location of your property and a sudden change in the market. In all of this, if the amount of revenue received from the business exceeds the amount of money spent, the excess is your cash flow.
  • Appreciation: This is often described as the nominal increase or rise in the value of a property. When the value of a rental property increases in absolute dollar terms, it is said to have appreciated. This normally occurs if the rate of increase in the value of a property exceeds the current inflation rate in the market.
  • Financial Leverage: This is the benefit received from the use of other people’s money (borrowed funds). This borrowed fund usually cost less than the return earned from its use. The investor will thus have control over a much larger investment.
  1. Non-Monetary Returns

These are the benefits that cannot be measured directly but by the investor’s personal investment aims and opportunity cost linked with a particular benefit. The benefits are as follows:

  • Pride of Ownership: When you are the owner and controller of a turnkey investment property, there is this pride that comes with it. As a result, you can confidently manage and make decisions concerning the property.
  • Diversification: Investing in real estate can be a way of diversifying your investment portfolio to ensure that the risk is shared across different kinds of investment businesses.
  • Security: There is this sense of security that comes with owning a rental investment property. There is a collateral attach to real estate, which can’t be found with stocks.

All these benefits ensure that owning a rental property can help you achieve your financial goals by creating a secure source of passive income. It’s all about getting educated and taking some risks.

Article Source: EzineArticles.com

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