How to Maximize Your Rental Income on a Single Property (Rookie Reply)

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 29 November 2024

⏱️ 38 minutes

🔗️ Recording | iTunes | RSS

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Summary

Are you leaving cash flow on the table? Even if you own a single rental property, there are all kinds of strategies you can use to generate more rental income, whether it’s house hacking, renting by the room, or converting your long-term rentals to short-term rentals. And we’re just scratching the surface! Welcome back to another Rookie Reply! Today, we’re diving back into the BiggerPockets Forums to answer some more of your recent questions. First, we’ll hear from someone who’s at a crossroads with their property. This house has paying tenants and consistent monthly cash flow, but the investor would need to sell the property this year to claim it as their primary residence and dodge capital gains taxes. Stay tuned to find out if they should sell or hold! Then, after a few cash-flow-boosting strategies, we’ll discuss using a HELOC (home equity lines of credit) for a down payment and the potential pitfalls you could run into! Looking to invest? Need answers? Ask your question on the BiggerPockets Forums! In This Episode We Cover: How to determine if you should hold or sell your rental property How to reach your cash flow goals with the fewest properties possible Creative ways to maximize your rental income on a single property How to set realistic cash-on-cash return goals for 2024 and beyond Potential pitfalls to avoid when getting a home equity line of credit (HELOC) And So Much More! Links from the Show Ashley's BiggerPockets Profile Tony's BiggerPokckets Profile Join BiggerPockets for FREE Real Estate Rookie Facebook Group Real Estate Rookie YouTube Real Estate Rookie 447 – Making $300K+ Profit Per Rental and Scaling FAST with “DADUs” Real Estate Rookie 375 – Making $160K/Year From ONE “Rare” Property Thanks to Seller Financing Protect Your Properties with an LLC Through Corporate Direct Ask Your Question on the BiggerPockets Forums Buy “The Book on Rental Property Investing” Find an Investor-Friendly Agent in Your Area Real Estate Rookie 195 – Financially Free in 2.5 Years by Buying “Low Risk” Rental Properties (00:00) Intro (01:01) Should I Hold or Sell? (10:13) Maximizing Rental Income (20:43) What’s a “Good” Cash-on-Cash Return? (23:40) Should I Get a HELOC? (32:36) Ask Your Question! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-490 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Let's get your questions answered.
0:07.3	I'm Ashley Care and I'm here with Tony J. Robinson.
0:11.0	And this is the podcast to help you kickstart your real estate investing journey.
0:15.2	And today we're going back into the Bigger Pockets forums to get your questions answered.
0:19.5	Oh, guys, the forums are the absolute best place to quickly get all of your real estate
0:23.1	investing questions answered by experts like me, Ashley, and so many others.
0:27.0	But today, we're going to discuss how to determine if you should rent or sell a property.
0:32.3	We're going to talk about a realistic cash on cash return in 2024 and beyond.
0:36.8	And finally, we'll talk about what to keep in mind if you're considering a helock.
0:40.8	Now, before we jump in, we want to give a big, huge thank you to Corporate Direct.
0:44.1	This episode is sponsored by Corporate Direct, where you can protect your properties with an LLC
0:48.6	and let Corporate Direct take care of all the paperwork.
0:51.6	Go to BiggerPockets.com slash direct for a free 15-minute consultation
0:56.2	and get 100 bucks off if you mentioned the Real Estate Rookie Podcast. Let's jump into the show.
1:01.6	Okay, so our first question today is from the Bigger Pockets forums. And here's the question.
1:08.9	I need some advice on whether to sell or hold on to a property that I purchased in 2020.
1:14.5	To provide more context, my spouse and I purchased our first property in California in 2020 for
1:20.1	$500,000, and that has currently appreciated to $700,000.
1:24.4	We did live in the property for a little over two years, but due to family
1:27.9	reasons, we had to relocate to Canada in early 2023 and have been renting out the property
1:33.9	since then. We did hire a property manager, but even after their $200 fees per a month,
1:40.1	the property is cash flow positive around $500 if we consider a mortgage plus HOA plus property tax.
	...

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