ThE ABc’S OF BUYING cASh FlOW REAl ESTATE lIkE BIllION-dOllAR PRIvATE EqUITY FUNdSmatch traditional debt to income ratios, with prices between 3 to 3.5
times median annual incomes.
Common sense tip: stay away from liberal, tenant-friendly states. A
good starting point to identify easy eviction states is to check out at an
Electoral College map that illustrates traditionally red and blue states.
Start with red, capitalist states. Then, interview local property manag-
ers for average eviction costs and timeframes. If it generally takes more
than 2 months to evict a tenant, RUN!.
Quite simply, a safe real estate market has a healthy economy with
strong population growth trends. And if it’s an affordable market, you’ll
see higher net returns on your cash and sound appreciation potential.
Additionally, if you stay in front of retiree movement within the U.S.
and are in a landlord-friendly state, you have further protection from
falling prices and rents.
If you follow the steps to identify a bullet-proof macro market, your
checklist should look like this:
- High GDP per capita
- High population growth trends
- Affordable market
- Southern hemisphere of the U.S.
- Landlord-friendly state
Now that we’ve narrowed our high-level search to one or two ideal
markets, let’s zoom in with a microscope to areas within this market
where prices are trending the right direction, absent high crime and bad
schools. From there, we’ll start putting our local team in place to ensure
a seamless, hands-off ownership experience.
If you’ve been diligent enough to follow the steps above, you are well on
your way to establishing long-term financial peace of mind. I’m anxious
to continue this journey with you. Go to: http://www.SafeCashFlow.com for
resources to help you start building a high-performing portfolio of homes.
I can’t wait to see you on the other side!
P.S. If you were really curious to know how many hotdogs Takeru can
inhale in 12 minutes, the answer is 64.5. Got Tums?