“I’d like to start real estate investing. Is it possible to get a positive cash flow if I buy a house or condo?”
***ANSWER:
For my first 24 years in real estate, when you bought a rental in San Diego the question was always, “How much will my negative cashflow be?”
Now, I can finally answer that, YES, you can get a positive cashflow.
Of course, literally speaking, the answer was always “yes”…if you were willing to put down 30%, 40%, 50% or more.
But now, in many cases, you can put down 20-25% and get a small positive cashflow (even BEFORE factoring in the tax benefits), especially if you personally manage the property &/or do the maintenance.
And on many properties, 25-30% should do the trick and get you a small positive if you have that work professionally done; again we’re talking before the tax benefits.
Notice that I’ve said “in many cases” and “on many properties”.
That’s because you’re not going to buy a house in La Jolla or Carlsbad or Scripps Ranch and get a positive cashflow w/ 25% down. The numbers won’t work.
Generally speaking, we’re talking about houses under $300,000, condos under $200,000, and 1-4 units under approximately $200,000 per unit.
But don’t take this is a magic formula. You’ve got to analyze each property individually.
And remember, the tax benefits should make the numbers even better for you.
If you want to discuss buying an investment property, call me at (858)457-5368 and we’ll help you analyze and find a property that should bring you a positive cash flow.
Use A.N.D.R.E to find San Diego investment properties.
