Choose an income property with a positive or slightly negative cash flow. Also look at the Effective Monthly Cash Flow, which is your long-term Equity Gain divided by the time period.

For example: an income property we found with a Monthly Cash Flow of $830 yields a Net Equity Gain (including Cash Flow, Appreciation and Principle Reduction) of about $440,000 over 10 years. This gain spread over 120 months (10 years) would be the equivalent Effective Monthly Cash flow of $3,667. Quite impressive!

And with condos, do not forget the monthly HOA fees eating into your cash flow.

Note
You can still build significant equity even with a slightly negative cash flow. We'll show you how.

Bottom line
You need a complete and accurate cash flow calculator to determine the right mix of initial investment, purchase price, cash flow and ROI for your investment needs. We offer such a tool: our SMART Residential Income Property Cash Flow Calculator^©.

Contact us, and see how well it works for you.