Cash flow is still King

Discussion in 'General Property Investment Discussion' started by Longterminvestor, Aug 6, 2019.

  1. Longterminvestor

    Longterminvestor Administrator

    In the early days of your property career the majority of your cash flow is likely be eaten up by costs and taxes. However, as you expand your portfolio you will see a significant rise in your cash flow in your role as a private landlord. Managed correctly, cash flow can be used to fund now only current mortgage obligations but also future property acquisitions. Remember, cash is king!
     
  2. realdeals

    realdeals Active Member

    Cash will always be King - paper profits are great but thats all they are, hypothetical profits. Good old fashioned cash in the bank will help fund your future investments :)
     
  3. Longterminvestor

    Longterminvestor Administrator

    There will always be a degree of finance available if you have cash flow - if you are fully invested with no cash flow it can be more difficult.
     
  4. SRGJ

    SRGJ New Member

    What would you advice for a 24 year old looking to get into the property game, my main focus is to build a cash-flowing portfolio however starting off with limited funds and experience would you recommend an interest only mortgage on a relatively cheap property up north as long as the rental demand is there? Even if its only bring in say £300 Net a month?
     
  5. diyhelp

    diyhelp Active Member

    Personally I think there is a lot of mileage building up a portfolio of high yielding properties with some potential for capital growth. You cannot beat strong steady cash flow when planning ahead.
     
  6. Be ambitious at the start, but dont over stetch your finances, stick to areas of the market which genuinely interest you, this will keep you focused. Other than that - enjoy your journey!
     
  7. FWL

    FWL Member

    Cash flow is not only vital for investment but it also shows potential lenders that you have been sensible and not taken undue risks.
     
  8. realdeals

    realdeals Active Member

    You need to look at the current market trend, towards relatively high yielding properties, to see that cash is and always will be king.
     
  9. Longterminvestor

    Longterminvestor Administrator

    Potential capital gain is all good and well in vibrant markets but when the chips are down, good old-fashioned cash is still king.
     
  10. Joshua0996

    Joshua0996 New Member

    Cashflow is always good, combined with long term capital growth. Cant go wrong
     
  11. Longterminvestor

    Longterminvestor Administrator

    I see cashflow as the back bone and capital gain as a long term target. If your rental income is paying your mortgage costs then the property is effectively cost free.
     
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