Thunder Bay Real Estate
- Author Scott Smith
- Published August 12, 2010
- Word count 429
Creating Cash Flow From Thin Air
Thunder Bay Real Estate - Know Your Numbers - Part 2
Another example of utilizing an overlooked asset would be something like renting out a parking spot or turning a garage into a rentable storage unit.
In the case of attracting a more upscale tenant you might see a condo for sale in Thunder Bay located near the hospital. You go in and enhance its appearance a bit and furnish it and then put it on the market as a furnished apartment / condo for "locum's" at the hospital and you end up creating a unit that fetches up to double the standard unfurnished market rent.
At the end of the day you can increase your monthly cash flow just by becoming a "Thunder Bay Real Estate Turnaround Expert!"
Find a piece of real estate that has positive or almost positive cash flow and create a higher and better use for it or improve the operating numbers.
Lets now break down the numbers side of determining Cash Flow or Net Operating Profit:
Money In - This is the rent that you collect. That's it!
Do not count the amount of "principal" that you pay down on your mortgage with your regular mortgage payments. That gets counted in another calculation you will learn about in a future article.
The amount you pay down on your mortgage is basically phantom income that in most cases is not realized until you sell the piece of real estate. I say "most" because there are cases where you may purchase and then use a home equity line of credit or something of that nature to free up your principal, but that is for another discussion.
Money Out - Is all your monthly / annual expenses.
This includes your condo fees, utilities, mortgage payments, light bulbs, insurance, lawn mower gas, etc.
At the end of the day there are only two things that can possibly create more cash flow. One is to collect more rent. Either through rent increase, finding a higher and better use, entering a more upscale market or by creating more income streams than are currently present by utilizing overlooked assets.
The second way is simply to cut expenses to the bone. If you can offload the responsibility of a variable expense it is in your best interest to do so as long as it does not harm relations with the tenant. A prime example of this is something like hydro.
You can find an excellent real estate opportunity in Thunder Bay just by visiting http://www.MyThunderBayRealEstate.com.
Scott Smith is a local Thunder Bay real estate investor and more information can be found at http://www.MyThunderBayRealEstate.com.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Port Orange -- The Perfect Twin Sister to Daytona Beach
- RE/MAX Ace Spearheads Innovative Housing Solutions in the GTA
- Should You Waive the Home Inspection Contingency? Weighing the Risks and Benefits
- Avenir: Embracing Lifestyle and Community in Palm Beach Gardens
- Serbian Real Estate: A Tidbit for Investors
- Discovering Life in Pattaya, Thailand: An In-Depth Handbook for Expatriates
- DEBUNKING HOME REPORT MYTHS
- Don't Let a Financial Hardship Force You to List Your House
- Safe Water Starts at Home
- Don’t let Missing Insulation Lead to High Energy Bills
- Property Investors Amidst Favorable Swedish Krona Rates
- How Real Estate Professionals in Houston Go Above and Beyond for Home Sellers
- Reasons to invest in real estate in Cyprus
- Top 10 criteria to select an Insurance Claim Appraiser
- Comprehensive Home Inspection Checklist for Buyer, Seller, and Homeowner
- DEBUNKING HOME REPORT MYTHS
- North Carolina Real Estate Market: Shifting Market Dynamics on the way?
- Selling Your House in Winter: Effective Tips and Strategies for Success
- Would you like to have a Free House?
- 5 Ways To Know You're Ready To Buy A Home
- "Unlocking the Potential: Investing in Dubai's Booming Real Estate Market"
- Home Decorating Tips To Make Your Home Sell FAST!
- How Home Loans Became Helpful?
- Buying A Distressed Property
- How To Identify Utah's Top 50 Real Estate Agents On Social Media
- Are You Looking To Move To Logan, Utah?
- Tips to sell your home in 2023
- Dubai Real Estate Market: An Overview
- https://www.eastpascoliving.com/active-adult-communities-in-east-pasco-florida
- Where Is Green Building Architecture Leading the Human Civilization?