The Cash Flow Commando

When you close the deal in September but come to find out half the tenants pay rent from their tax return and they’re 2 months late the day you take over but the landlord used their security deposits to show current rents by the time of closing.

You know who you are 😂😂

They think it don’t be like that but inevitably it do

Lessons learned with time.
- Understand your states tenant/landlord laws.
- Understand the enforceability of your lease.
- Know there are work arounds for everything.
Section 8 is great because of the reliability of the government’s money. It’s not great when you inherit tenants that you didn’t get to personally screen, because it can be very hard to evict them if the state is paying 100% of their rent.

I have had both great and not so great experiences with section 8 tenants.

One has actually improved the home by painting it herself, making minor repairs without calling, and even paying extra because she knows I should be getting more.

Another punches holes in the walls, rips electrical boxes out of the walls, and constructed their own addition in the basement without my permission.

If you find yourself in a bind with a situation where the tenant keeps destroying your property, but you can’t evict them, you can always sell the property to yourself. Either from LLC to personal, LLC to LLC, or personal to LLC and they will have 30 days notice once the contract is signed and 30 days post close before the sheriff removes them. Just confirm with your deed and lease verbiage for any restrictions on the tenants in the event of a sale.

Attention to detail. Glad it happened so I could become that much sharper of an investor. Some other markets I’m in, the taxes have stayed the same the tenure of my ownership!

Monday morning good for thought. Side hustles are a great way to get the ca$h to use to invest into your knowledge or skill set. Once you develop those, go all out on your plan with massive action. Side hustles can become a distraction, but are great initially!

Food for thought w the recently passed inflation reduction act. Lot of opportunities to start businesses with grant money or prepare for forthcoming customer demands!

It’s important to build a strong team. Do the hard work upfront of qualifying good people to work with, then build good relationships with them to leverage their knowledge and competency to help you in closing future deals.

Follow on twitter for the rest

Combine that VA loan and navy fed loan and cut your time in half towards a monthly paycheck you don’t actively work for.

Word of the day is: Leverage.

The key to growing your business quickly is your ability to leverage other peoples money and have that money, make you money.

In this example, we’re using the bank. The more cash flow you can make while a property has a loan on it, the more valuable the deal because you can refinance later for a lower interest rate and make more cash flow, pay off the property and make more cash flow, or do a combination and do a cash out refinance and take that equity into another deal.

When analyzing properties, your take home cash isn’t just rent - mortgage payment.

Other factors include:
Property tax
Insurance
Lawn care
Snow removal
Repairs
City business license fees
Rental registration fees
Tax on your earnings
Property management?

Be sure to understand what they are and if the deal still makes sense!