Finding Positive Cash Flow Property: 10 Top Tips
The beauty of a positive cash flow property is that it won't burn a hole in your wallet but you'll have to work hard to find one that also delivers good capital growth. Keep in mind that any profit you make on the rental income is likely to be subject to capital gains tax (after depreciation and other tax deductions), so it's wise to put aside a component of your rent return to meet the tax bill. Positive cash flow properties are suited to investors who are looking for a conservative investment strategy and are keen to use the extra cash in the pocket to pay down debt and/or increase their equity to make room for further investment. Here are 10 top tips for finding positive cash flow property: Buy a property that generates a strong rental yield (the return your property generates compared to the property's market value). Know your statistics. Look for indicators...