Jan 28, 2016
#4: Paula shares a confession. Then she redeems herself by sharing her gross monthly income.
(Yeah. Listen from the beginning).
Full show notes at http://TheMoneyShow.co/04
There are a variety of ways to invest in real estate:
- Flipping houses
- Buy-and-hold
- Tax liens
- Wholesale
- Income-producing rental properties (commercial and residential)
Paula loves residential rental properties.
Ask yourself: Do you want capital appreciation or cash flow from rental income?
Paula puts a few guidelines in place to determine if a property is right for her.
First of all, the monthly rent needs to be at least 1% of the total acquisition price.
Example: A $100,000 home would need to rent for $1,000 a month. Why? Because roughly half of the rent is gobbled up by operating overhead:
Taxes, Insurance, property management, and repairs/maintenance
Paula offers much more valuable information in this episode and on her blog, AffordAnything.com.