Tom and Nick Karadza are real estate professionals that are focused on helping real estate investors in the Greater Toronto and Golden Horseshoe areas create income to live life on their terms. They are active real estate investors and in 2008 they launched Rock Star Real Estate Inc., a Canadian real estate brokerage focused exclusively on real estate investments. Together with their team of professionals based in Oakville, ON, Tom and Nick have worked with investors to help acquire over 2 Billion dollars of investment in real estate and implement profitable investing strategies across southern Ontario.
Good advice, appreciation does not pay the bills. Some people think it does but you are not holding a stock that has no overhead, you are the owner of something that takes work and $$$$ to protect the value of. I recently met with a banker who had never been a land lord. I laid out a business plan saying I planned for $300 a month in maintenance expenses beyond any fixed expenses like financing. He said that was a lot. I said that is nothing, you piss away $300 in a flash. You start replacing a roof, windows, furnaces and if your not replacing an appliance your maintenance budget for the entire year just got blown away on a $5000 furnace. Plan to make nothing on your property after you pay everything and 1% in maintenance.
If I may. So. by positive cash flow, it of course on a black and white ledger, means rent in, insurance, condo fees (if appl) mortgage/int, reno's and upkeep out (utilities - depending on lease agreement), leaving an understanding of the accounting and what can get written down and tax time (with a separate account, and income/outflow trail during a year, then what I assume is a tax refund, to add to inflow, for the overall Cash Flow calculation? (Only to be pulled out of a personal income tax filing, and interpretated to one property, or more trickier, many).