Mortgage interest rates for investors are up over 8% and the overall prices of real estate are up too.

This has left a lot of real estate investors scratching their heads saying, this is impossible.

How am I supposed to make rental properties cash flow in today's market conditions?

Well, in this episode, I want to share four different ways that you can still make a rental

property cash flow even today in 2023 and 2004.

And it's using some creative financing and purchasing techniques that I've used for the last

21 years as a rental investor. Now, I want to start by showing you the numbers of what it

looked like just a couple of years ago back in early 2022 when you could get a 4% mortgage.

So let's say you went out and bought a $300,000 property as a rental. You probably had to put at least 20% down, which in this case is $60,000, which means you would borrow $240,000 on your mortgage. Now, you can use any mortgage calculator. I have a link to one that I've used for free for many years. And when you plug in $240,000 of borrowed money at 4% interest over a 30 year period,

you get that your monthly payment would be $1,146.

So that was the 4% world.

Let's now compare that to the 8% world that we're in right now.

If you could find another house for $300,000, and I know prices have gone up, but there's $300,000 houses out there. And you put the same

down payment, $60,000 and borrow $240,000, but you had to pay 8% interest. You could plug

those same numbers into your mortgage calculator, and instead of the lower monthly payment,

you now have to pay $1,761 per month. That's a difference of $615 per month or $7,380 per year. It's easy to see from

these numbers how rental investors lost all of their cash flow and then some when they went to buy

new rental properties with these higher

interest rates. Now I want to show you the numbers on what it would look like to actually rent

that property in both the 4% scenario and the 8% mortgage scenario. So let's assume we can rent

the property for $2,000 per month. And of course, we don't get to keep all of that rent. We also have

expenses and what are called operating expenses.

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