The days of buy, fix, and flip are over with for the most part.  In these times of few buyers, high foreclosures, and surplus of properties, the market is in the perfect condition for investors to cash flow their way to wealth.  Rental prices are holding steady and in some markets increasing.  This provides the perfect storm for real estate investors to create cash flow off of their properties through rentals or seller financing. 

To begin with, what is cash flow?  Cash flow is the sum of the after-tax profit of a business plus depreciation and other non-cash charges.  This is the money you make minus expenses.  Once expenses are paid and you still have funds left over, this is positive cash flow.  If your rental income doesn’t cover your expenses for the year, this is negative cash flow.  NEVER buy a property Read the rest of this entry »