When you are just starting out, I will suggest it may be all about the cash flow. Especially if you are counting on this money to pay bills and survive. Sometimes, the real wealth comes to those who wait and can see the forest through the trees. Don’t get me wrong, cash flow is important, but not always the only thing to consider. A good example to use are three properties that I own.
1. A duplex I paid 90k for that has cash flowed for me very little the first 15 years. The loan was held by the owner and I borrowed the 10% I put down. Essentially I put zero of my own money down. Now it is paid off and worth nearly 200k. I have owned it for 23 years. I wish I had purchased 10 more like it. It’s been vacant less than 1% of the time, and has been low on repairs. I also added value by building a garage 13 years ago and its been rented out for $150 a month for the entire time. The garage added $15,000 value to the property and cost me only $8,000 to build.
2. A nine unit property I bought for $250k in 2008 is now worth over $350k. I was able to put down only 15% and the owner held a second mortgage. During my ownership, I have actually lost on average $500 a year. Now my balance is under $100k and my net worth for this one building is $250k and climbing. I have my management staff handle most of the issues, repairs, and vacancies, and I am involved very little.
3. I paid $205k in 2008 and it was worth about $240k at the time. I put down 20% and the loan was amortized over 15 years. It’s now worth $380k and my balance is around $70k. This property was cash flow neutral since ownership but will be paid off in less than 5 years.
As you can see, I bought quality and put down as little as zero money to buy at least one of these properties, and as much as 20% to buy another. In less than 5 years my net worth will most likely be over 1 million dollars, and these properties will also cash flow and be free and clear so I can now use that equity and re-invest.
Now duplicate this scenario another 20-30 times, and in 20 plus years you are sitting on millions of equity and hundreds of thousands of dollars in rental income! Anyone can do this, but this doesn’t happen overnight and it takes lots of work with no reward. But if you don’t mind working, waiting, and being smart…your reward will come.
1514 Broadway Ave in McKees Rocks is a fantastic investment property and welcome addition to your portfolio! With little TLC needed and listed at only $34,500, this 2 bed, 1 bath property won’t be on the market long. Click on the image below for full details!
Periodically, our very own Ian Hoover sits down with other successful real estate agents to talk a little shop and share tricks of the trade. Ian and his guests always deliver compelling conversations filled with knowledge and experience to help you unlock your maximum potential! Get caught up on previous episodes, and stay tuned for new episodes coming soon!
Your stomach isn’t just where digestion and metabolism happens. The gut is full of bacteria, yeast, and viruses (all of which help to keep you healthy). There’s a delicate balance, and we can throw it off with a poor diet, too much stress, and even medications. Why is it so important to keep your stomach balanced and healthy? According to Yale-trained physician and midwife, Dr. Aviva Romm, “Disruptions in the microbiome (google it) have been associated with diabetes, weight problems, anxiety, depression, autoimmune disease, sugar cravings, fatigue, PCOS, fertility, immune health, adrenal dysregulation, and much more.”
Protect your digestive system and stay healthy. Beware of these medications that are known to wreck the gut:
Antibiotics can be particularly dangerous because they don’t discriminate between good and bad bacteria. Therefore, while they are useful in wiping away bad bacteria, they also clear out good bacteria, leaving your gut vulnerable to illness.
Research now shows that 25 percent of non-antibiotic drugs stifle the growth of good bacteria in the gut. Prilosec and Metformin are two common non-antibiotic drugs that can harm the digestive system with long-term use.
Non-Steroidal Anti-Inflammatory Drugs (NSAIDs)
If you’re not sure what a NSAID is, it’s a common pain medication like Ibuprofen or Tylenol. But taking Ibuprofen for just five consecutive days can lead to digestive problems, including leaky gut, gastritis and stomach ulcers.
(Sometimes, it’s necessary to take these medications. However, if it’s possible to avoid them, it might help to keep your stomach healthy. If it’s necessary to use them, be sure to take extra good care of your stomach to re-balance bacteria and prevent illness and digestive problems. Also, we’re not doctors, and we’re not trying to play one on TV. Ultimately, consult your physician with any concerns.)
“The Deacon of Real Estate” Alex Deacon has already recorded over 16 HOURS of original informative content! If you haven’t been listening, now is your chance to catch up! Alex uses his 25+ years of experience to deliver tips and suggestions from his own personal real estate investing and property management experiences. This free knowledge can be invaluable!