Increasing Cash Flow

If you have got got an income producing property, the amount of money you are left with at the end of your property disbursals is considered cash flow.

Here is how it works . . .

Lets say you have a duplex house and your monthly mortgage payment including taxes and insurance is approximately $1200.00.

Now allows say you have a tenant on each flooring with a 1 twelvemonth lease, and you charge each tenant $850.00 a calendar month to dwell there. This is a sum of $1700.00 paid to you on a monthly basis.

Once you have got paid your mortgage of $1200.00, you are left with a balance of $500.00, this would be your monthly cash flow from the income producing property.

If you are looking to increase your monthly cash flow, one of the easiest ways to make it would be to raise the rent. This is by far one of the most effectual and common ways of increasing cash flow.

Another manner to increase cash flow depending on the amount of equity you have got established in a property would be to utilize some of that investing property’s equity to purchase another income producing property.

Using the same principal of charging more than than the amount of your sum disbursals on the property, you will once again be increasing your cash flow.

Keep in mind, when doing any sort of repairs to the home, including landscaping, do certain you salvage the gross to be used as a compose off. This to shall aid to reduce earnings, resulting in cash flow in the manner of an annual tax return.