Statistics show that the median for a home in the United States has increased by 416% since 1980. This includes the housing market crash in 2008.
Why is this statistic important? In order to achieve cash flow in real estate, you want the value of homes to continue going up!
What investments can increase your chances of a profit? Where can your create cash flow in your current investing approach? What are the cash flow properties that you should be looking for?
Keep reading to learn more tips to maximize your real estate cash flow.
1. Add Properties
Whether you are just getting started or are looking to expand your real estate portfolio, we can help! Adding properties means more cash flow coming to you.
We have an exclusive list of available properties that you could purchase for this exact purpose. Filling these properties with tenants would give you an opportunity to have an additional stream or multiple streams of revenue going forward. Figuring out what type of property you are looking for and the budget that you currently have to work with is helpful for us to start the conversation.
Memphis is a growing location for real estate and the low home prices and high rental rates could be exactly what you have been looking for.
2. Charge More For Rent
One of the quickest ways to increase your cash flow is to charge more for rent. Timing is important with this, as you likely have a contract with your current tenants at a set rate.
If they pay monthly or the lease ends soon, this could be your opportunity to raise the rates. You can dial in the new price by looking at comparable units in the area.
If you make any upgrades or renovations to the space, you can also justify the high price to cover the cost of the upgrade.
3. Talk With Others About Their Real Estate Cash Flow Strategies
Who better to ask about real estate cash flow than fellow investors in the business? Not everyone will be open to sharing their approach or tips on how to make more money but some will.
Networking events with a real estate focus could be a good place to start these conversations and form connections moving forward. Explaining your current portfolio and your goals for the future can give your advisors a better idea of how to guide you forward. Any advice you gain will be more than you knew before.
4. Try Refinancing
Refinancing is a process that people often think of for their personal homes. Getting a lower rate than the original loan and paying less long term is the goal.
The same can be done with your real estate units. This can be done to the actual unit but another approach is to refinance your debt. Some lenders will run promotional rates or give other incentives to consolidate all of your debt in one place.
Doing this not only will lower your cost, it allows you to increase your cash flow by paying less interest over time. You can apply a portion of your cash flow directly to the one loan and not have to deal with the stress of going to several banks.
5. Lower Your Expenses
Think of this tip like you would approach your personal income. If you want to have more money coming into your household, the quickest way to do it is by cutting out some of your expenses or searching for a lower cost option.
You can do the same thing with your real estate properties. This may include installing energy efficient appliances that lower your electric cost or installing LED lights within your units. Getting quotes for different technology upgrades that you can add to the unit could help use less energy too.
6. Add Upgrades to Your Existing Units
What does the carpet look like in your units? Would new flooring add value to the space? What other areas could be improved on?
Small renovations, such as painting a room, can make a huge difference in the visual aesthetic of the unit or home. These small upgrades don’t require a lot of cash but can greatly increase your cash flow in other ways.
7. Screen Tenants
When you first begin your real estate investing career, you are probably going to be thrilled to have every unit rented. While occupancy means you will be getting paid, the best situation is to have reliable tenants that will pay rent on time month after month.
Finding tenants that will renew their lease and stay longer can also benefit you because you won’t have to spend the time and marketing dollars to find a new fit for the space.
Developing a process for screening tenants can be customizable to your situation. Depending on how many units you have, you could start a waitlist for your upcoming leases. This would allow you to gather information about your potential new tenants and have a decision made by the time the lease is up.
Increase Your Cash Flow Today
Now that you have read more tips to maximize your real estate cash flow, you can take action today. Please reach out to us with any questions you may have and we look forward to getting started helping you with your real estate endeavors. Check out our website to read reviews on what it is like to work with us and how we can help you make more money!