3 Ways to Find Cash-Flowing Rentals EVEN with 7% Mortgage Rates
HTML-код
- Опубликовано: 19 июн 2024
- Everyone keeps saying how it’s SO hard to find cash flow with today’s seven and eight-percent mortgage rates. But how true IS this statement? Is it actually impossible to find cash-flowing rental properties, and if it was, how have Chris Lopez’s clients in pricey Denver been able to buy rentals with up to a FIFTY PERCENT cash-on-cash return? We thought cash flow was nearly impossible, so how is Chris doing it?
Well, no need to speculate because Chris is here to share the three ways that he’s finding SOLID cash flow even with 2024’s breathtakingly high mortgage rates. These three strategies can be used in almost any market, and DON’T require you to put down a large down payment. But, if you have a chunk of change and are looking for more cash flow, Chris does the math to see how much a twenty to twenty-five percent down payment could boost your passive income.
Which of these strategies would you use in your market? And if you’ve used any of them before, let us know in the comments how well they worked for you!
~~~~
Join BiggerPockets for FREE 👇
www.biggerpockets.com/signup?...
~~~~
See Chris' Numbers on BiggerPockets:
www.biggerpockets.com/analysi...
www.biggerpockets.com/analysi...
www.biggerpockets.com/analysi...
www.biggerpockets.com/analysi...
www.biggerpockets.com/analysi...
www.biggerpockets.com/analysi...
~~~~
Find an Investor-Friendly Agent in Your Area:
biggerpockets.com/agentmatch
~~~~
Find Investor-Friendly Lenders:
biggerpockets.com/findlenders
~~~~
Try the BiggerPockets Rental Property Calculator:
www.biggerpockets.com/rental-...
~~~~
Chris' Real Rental Numbers:
www.biggerpockets.com/analysi...
~~~~
Cash Flow For Rental Properties: What is Average or Good?
www.biggerpockets.com/blog/re...
~~~~
Seeing Greene: How to Make Even MORE Cash Flow Off Your Rental Properties:
www.biggerpockets.com/blog/re...
~~~~
How to Invest in Medium-Term Rentals:
www.biggerpockets.com/blog/ho...
~~~~
How to House Hack By Renting-By-The-Room:
www.biggerpockets.com/blog/ho...
~~~~
Connect with Chris on BiggerPockets:
www.biggerpockets.com/users/c...
~~~~
Follow Chris and BiggerPockets on Instagram, and RUclips:
BiggerPockets: @biggerpockets or / biggerpockets
Chris: @chrislopez_co or / chrislopez_co
RUclips: / @buildingwealthwithrea...
00:00 ow to Find Cash Flow in 2024
01:47 Airbnb Growth is Over
04:02 10% Return with Medium-Term Rentals
07:51 Value-Add Multifamily
09:09 $1,300/Month Cash Flow!
14:26 Rent by The Room
16:00 0% Return as a House Hacker!
18:50 Don't Have Time or Money?
I started with house hacking 2 rooms in my house. Then bought a 4-room townhouse to Rent by the Room self-managed. I am definitely in the trend. Thanks for sharing the comparison!
Awesome!!
I LOVE the side-by-side comparison. Chris is so clear and concise. I learned a lot in a short period of time and it got my gears turning!
$330/month for a mid term rental seems like it’s not worth the energy
That’s why you don’t get it.. it’s tough to wrap your mind around working for equity/future purchasing power/hedging against inflation/hedging against less valuable investments.
But people are also paying off the house for you. Plus depreciation perks. Potential appreciation perks. Potential future rent increases. Could end up being decent. But I get what you’re saying too. It’s a hard call.
if nothing goes wrong not enough leverage to cover some bs with the tenants or repairs house hacking using sounds more lucrative
It’s all relative to the market, person, and how much they value the other ways RE makes them money. Unfortunately it’s just hard to cash flow now!
One HVAC replacement will take 2 years worth of rent. No wonder these guys have to buy 100s of properties smh
Thank you for outlining the options..... I mean Opportunties! in this market, great ideas to think about. Love that these are REAL numbers and honest expectations
Great video! I find cash flowing deals all time time. I just got one under contract the other day. I will be doing a video on it soon!
Chris Lopez's videos are always the best, learned so much from this video. I don't think room by room is for me, but if I was starting out in real estate I would be all over this.
Thank you!
Great video! I like how the thought process is laid out.
Great video
I wish I had started with house hacking in my early twenties 😭 This was helpful to see the differences in cash flow between the house hacker and landlord though!
Yea I wish is started in my 20s too
That’s what I did a year ago if you’re working out great! if I have a downturn for two weeks, I’ll put it on Airbnb and then once I get another contract midterm rental back in the game they usually stay between 3 to 7 months I’ve had them stay for a year
I like that idea of filling in the MTR vacancy with STR. How much extra revenue did that bring in?
Chris es muy chingon 👍🙏🙌🏾💪🏾❤️🇺🇸👏🏿
I like this guy a lot
Thank you!
Well spoken! Articulate!
I’m your trend #1 almost exactly. Living in 3/2, STR the 2/1. Looking at going to MTR and soon. Self managing and turnover is killing us.
What do the numbers look like for MTR?
Still figuring that out...as in learning how to determine what MTR would bring. I'm in Tampa so looks like a great market for MTR. @@BuildingWealthWithRealEstate
@@BuildingWealthWithRealEstate My best estimate is around $2800/mo on the ADU. Still learning how to do this. Looking to move out of the 3/2 within a year and STR/MTR both.
We've been considering the same for one of our STRs but it seems others in our area have the same idea and the local MTR market is now starting to get saturated.
Ironically, with all the units dropping out of STR space, perhaps staying in STR may be the right play.
@@eddiemalvinI'm thinking it will end up being a blend of both depending on the season. The tricky part looks to be how much to leave open out front for the longer stays when some people make reservations as far out as a year. Either turn them down or move some of your bookings. With only one place, that's a pretty tall order right now.
Where can I find these different types of loans for house hackers to reduce down payments & PMI ?
The best place to look is biggerpockets.com/findalender! There you can find investor-friendly lenders that know all about the loan products you'll need for your market and specific strategy.
No capital but lots of time and doing deliveries so driving by homes all day long in my area.
An investor holding a cash flowing rental at a lower purchase price plus a 4% mortgage is going to want a lot of money to give that up and the buyer then has to deal with the higher rate causing that cash flow to evaporate for the new owner.
I just sold three cash flowing rentals with a sub 4 rate. While the cash flow was good, selling and reinvesting was the better move for my goals
How do you thin AGI will impact the real estate market? How do you think people will migrate to other areas. Do you think home values will go down? will the margins on real estate investments become so small that it wouldn't be worth it anymore?
I can speak to Denver metro. No I don’t think prices will drop. In 2023 we were up about 4.5%. Some people will move out, others will move in still.
Yes margins are getting tougher.
A few hundred dollars of monthly cash flow is not worth the headache of landlording smh.
I can figure out how being out 125k for 580 a month could make sense
330 a month not worth it. At least 2k a month after expenses
Where are you getting 2k mo?