Real value in Real Estate is not only Cash on Cash

 

Cash on Cash is important and as the prices go up so does the rent. The issue I see a lot of investors doing is using the strict template that matches their needs they think. That creates a platform for just looking at the cost of a property and it needs to match an investor template.

The issue with looking just at the cash on cash returns is the quality of the asset. I see this a lot with wholesalers. They need low cost real estate to make a living. When prices go up they need to look in areas that may not be as desirable. This creates a bad situation for the investor. They stick the numbers on their template and it looks good but it may not be.

The property above is a great example of a cash on cash and growing equity property. The owner of this asset will generate approx $1000+ a month after taxes, insurance and property management.

The equity is also growing very nicely on this property. The owner is creating a lot of wealth with the great equity position.

Tenants stay 18-24 months in this area and leave these properties in great condition. This keeps costs down when you have a tenant move out. The property above was just $1500 to update after the last tenant moved out.

That is why cash on cash is not the only thing to consider. Consistent monthly income is only done in good stable areas that have all the things people want in a community. That is what we look for with our clients.

Our current base of properties are almost all doing very well. That is a testament to the quality of real estate that we purchase.

Need more than just a property? Call me (Brett) 216-703-5740 Fathom Realty or Whatsapp me

 

 

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