Wow, I haven’t been on here for some time now…please don’t be mad at me. I know how much you all missed me. So today I was talking to one of my good buddy’s, he’s not in the real estate business, but he’s looking for more ways to generate income. I told him “Boss, you came to the right guy!” By the way, everybody likes to be called boss, it makes them feel way more important than they really are.
My buddy and I are started talking and I asked him if he ever thought about buying a cash flow rental property. He had no idea about cash flow properties, I had to drop a little knowledge on him.
I explained to my buddy how the smart investor goes about making money through rental properties. First we talked about finding properties below market value in good rental areas, where the rent is $800 and up. Then it was about getting pre-approved for a mortgage (my buddy doesn’t have enough money to drop cash on a house, so he has to finance). After we talked about getting pre-approved we talked about interviewing and hiring property management companies. This is one of the most important steps that people forget to do. When you have a good property management company, they’ll take care of pre-screening tenants, placing tenants, collecting rent, and they take ALL of the midnight phone calls when the toilet overflows and there’s water everywhere. Having the property management company makes having a rental property truly passive. You have nothing to do once you have the property, the management company will send you a check every month for the rent and you go along your merry way.
Also a very important part of the process to having great cash flow is making sure the rent is a minimum of $300 more than what the mortgage is. There is potentially an extra $3,600 in annual income that you can make while doing nothing. What can you do with an extra $3,600 a year? Pay off a credit card or two, buy Christmas presents for the kids, go on a vacation? Now think what you can do if you 5 of these properties? That’s potentially an extra $18,000 a year! Now I know even some of you rich people who read this blog can use an extra $18,000, that’s a weekend in Vegas for some of you ballers.
There are plenty of great rental areas in the Kansas City market. I have a property right now in a great rental area that I’m looking to sell. I would sell it to my buddy, but he needs to get pre-approved for a loan and take all of the necessary steps to make sure this is a pain free and cash flowing process. I also can get him a rental property whenever he wants one, it’ll take me less than a week to get him something that fits his criteria.
If you’re looking for a great rental property in the Kansas City area with a ROI of 20% or higher, let me know and I can get you something quick and affordable.
Call us at (913) 489-7070 or email us at wardell@crownpropertysolutions.com
Crown Property Solutions 