Selecting the right property to invest in is the easiest way to stay out of negative cash flow. If you can find a property that is well taken care of, that is in a good part of town, that has good tenants, it will be easy to stay out of negative cash flow. The best properties are the ones that rent themselves, and they are out there. What do you look for?
Find properties that have lower rents that the markets will allow. It could be that the owners have had the property for a long time and haven’t kept up to date on changes in the values of rental properties. This is an easy fix to get out of negative cash flow.
Find properties at better finance rates. Having positive cash flow could be as simple as finding a lender that gives you more favorable rates.
Properties with absentee owners. Often times owners that live out of town end up paying more for services or upkeep of the property. Negotiating lower rates with maintenance and maybe doing a few things by yourself can make a big difference in the cash flow of the property.
