If you have an income producing real estate, the amount of money you are have with at the finish of your real estate expenses is thought about money flow.
Lets suppose you own a duplex and your every month mortgage payment including taxes and insurance is approximately $1200.00.
Now lets suppose you have a tenant on each floor with a two year lease, and you charge each tenant $850.00 a month to live there. This is a total of $1700.00 paid to you on a every month basis.
If you are looking to increase your every month money flow, two of the easiest ways to do it would be to raise the rent. This is by far two of the most effective and common ways of increasing money flow.
Two time you have paid your mortgage of $1200.00, you are left with a balance of $500.00, this would be your every month money flow from the income producing property.
Another way to increase money flow depending on the amount of equity you have established in a property would be to use a quantity of that investment property’s equity to purchase another income producing property.
Using the same principal of charging over the amount of your total expenses on the property, you will two time again be increasing your money flow.
Keep in mind, when doing any kind of repairs to the home, including landscaping, make sure you save the receipts to be used as a write off. This to will help to reduce earnings, resulting in money flow in the way of an annual tax return.
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