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Rental yield is an investor’s return from rental income on a property. This yield can be calculated in a couple of ways, and you may want to do both, as they each have their place in your assessment of a property’s suitability to your investment objectives. We’ll look at Net Rental Yield and Cash-on-Cash Yield. We will self-manage the property, so there will be no property management cost included in either calculation. Another assumption for both calculations is a 5% vacancy rate. Finally, we’ve purchased the property for $150,000.

Net Rental Yield:

As real estate investors constantly in search of a bargain, we obviously are drawn to short sales as a way to buy properties at steep discounts to market value. And, as a basic strategy, this is a viable approach to profitable real estate investment. The problems come from the process and the time restrictions to get it done before foreclosure or bankruptcy.

Real estate investing is by far the most rewarding thing I have ever done. I can honestly say that the worst day I have ever had in real estate, is still better than my best day I ever had at my job. One of the most rewarding parts of real estate is buying a piece of property significantly below market value. Not only does that make you feel good, but all of your friends, partners, and definitely your banker, feels good about it also.

There are many real estate investors who want to own a positive cash flow rental property, but they end up purchasing it tenant-ready or occupied. Perhaps they have no desire to work with contractors or accept the extra risk of the renovation process. And, there is room for all investment strategies. However, if you’ve considered the renovation to retail process, it’s all about the team and your due diligence in selecting the members.

Clyde Coleman
Charles Keevil
Allen Hart
Daniel Lee Wilkins
Richard Robinson
Georgia Cuddeback
Andrea Butterfield
Lori Rew
Matthew Campbell
Zachary R Wilson
Mireida Rodriguez
Roger Johnson
Vernon Collins
Nicholas W Fletcher
Dwayne Mitchell
Jennifer Webber
Danielle Holleman
Keith Baskerville
Francis & Marjorie Reca
Donna Lupien
Hector Ossa
Brian & Barbara Davis
Danny Howard
Cheryl Pisano
Jerome Riles
Renato Atienza
Nick Sahl
Albert Delgado
Horacio Galaviz
Curtis & Adorthy Harris
Karen Oliver-Jallow
James R Butler
Brendan Ripley
Michael Calise
Kevin Boyer

The buy and hold for rental approach to real estate investment is the most popular, but it isn’t the only way to realize a great return from real estate. In fact, the investor who wants to buy and hold frequently isn’t one who wants the hassle or added risk involved in the distressed property purchase and renovation process. They become a very good customer for the flip investor.

Many real estate investors run the other way when using a Realtor is mentioned. They see large commissions for little effort. But that is just part of it. Those commissions bite into the return on investment they’ll realize in their deal, whether buying or selling.

By Anita Wilson

After you find a property that is for sale by owner, make an appointment to view it. Sit down and talk with the owner. Even if they have a realtor, tell the realtor you would like to make an offer on the property but you insist on meeting the owners first.

If they say no, then you can always look the owner up from court records and contact them that way. But once you get face to face with them just talk. Don’t go in trying to be the big time real estate investor spouting off about their property and what you can do for them.

When do we consider estate investors increase their net worth and cash flow. If we have identified a purchase opportunity with selling or refinancing a rental property? It can involve personal preference as well as financial concerns. However, sensible leverage over time is how real excellent return on investment and a below-value purchase price, can another property help us to do the deal?

Charles "Chuck" Saale
Sean Castro
Keith Inwood
Audre Dixon
Ben Williams
Christina Hannan
Neomi Silva
Ruby Runyon
James Banks
Dawn Humphries
Mark Deyo
Conrado Cruz
Albert Valliere
Aymore "L" Oliveira
Nordene Dixon
Janie Montgomery
Arlet Ashjian
Lillian (Lily) Stoll
Michael Demetriou
Erin Emerson
Peter Cucurullo
Larry Thompson
Joseph Avella
Ophelia Encinas
Kelli & Jeff Wehrung
Terry Schulenburg
John Pacicca
Mark Muth
Shirley & Stan Mamoth
Louis Adolph
James Hawes
George Solis
Denice Ornelas
Debora Warren
Mickey Ternus
Yakov Zavulun
Fredrick Lee