Ask Paula - Can You Force a Rental Property to Cash Flow?

Afford Anything | Make Smart Money Choices

Paula Pant | Cumulus Podcast Network

Entrepreneurship, Investing, Business

4.7 • 3.6K Ratings

🗓️ 22 October 2018

⏱️ 58 minutes

🔗️ Recording | iTunes | RSS

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Summary

#157: We're back with another Ask Paula - Real Estate Edition of the show! In this episode, we cover down payments, cash flow, investing in condo hotels, building a rental on the side of your own house, selling your properties, and whether it's better to buy actual properties or REITs. Erin asks: Would you ever put 30% down (or more) in order to make a rental property cash flow positive? Avy asks: In 4-5 years, I'd like to have a rental property for diversification and passive income. Is it better to stick with the plan to buy rentals, or should I go into REITs? Additionally, if I want to invest in rentals, where should I look? Rod asks: Could you tell me if investing in condo hotels as a rental property is a good idea? I'm 10 years away from retirement, and I was thinking of buying one in Las Vegas, since I plan to move there when I retire. Being a traditional landlord doesn't appeal to me - I don't want to deal with the hassle of bad tenants or repairs when I'm retired. I'm hoping a condo hotel might be a way for me to get income from a rental property without all the hassle. What are the pros and cons I should consider? Tom asks: I want to build a small two-bedroom house on the side of my personal residence (located in Texas) to use as a rental. What advice can you offer to help me execute this plan? Sandra asks: I live in California, and 5 years ago I purchased 3 properties free-and-clear in Memphis, TN. While they’ve been working great for me, I think they have much more potential, but I’m no longer interested in managing them, or my property managers. It’s too much for me as I changed careers; I’m now going in a much different direction. All I want is to cash out and invest that money into my new business, as that’s more fulfilling to me. I know to sell them cash is the first choice but investors are in the game of low-balling - way too low. Selling retail is an option, but it’ll take longer, and I don’t know if the market is in my favor. Seller financing drags things out, and lease options are not great for me, so I’m interested in your feedback. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	You can afford anything but not everything.
0:10.4	Every decision that you make is a trade-off against something else.
0:12.9	And that doesn't just apply to your money.
0:14.2	It applies to your time, your focus, your energy, your attention.
0:17.5	It applies to anything in your life.
0:18.8	That's a scarce or limited resource.
0:21.2	And so the questions become twofold.
0:22.9	Number one, what matters most?
0:24.9	Not what the society say ought to matter most, but what truly matters most in your life.
0:29.8	And number two, how do you align your daily decisions accordingly?
0:35.6	How do your behaviors reflect your intentions?
0:39.2	Answering these two questions is a lifetime practice.
0:41.5	And that's what this podcast is here to explore.
0:43.8	My name is Paula Pant.
0:44.8	I'm the host of the Afford Anything Podcast and the founder of AffordAnything.com.
0:49.0	Welcome!
0:50.0	If you're new here, we have a lot of new listeners, a lot of new people who have joined
0:52.8	the Afford Anything community in the recent weeks.
0:55.8	So welcome!
0:56.8	And if you're new here, here is the normal format of the show.
0:59.8	Typically, every other week, we interview a guest.
1:03.1	And on the weeks in between, we answer questions that come from you, the listener community.
	...

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