How To Quit Your Job With Cashflow

Cashflow is the money you get every month after you pay all the bills and all the expenses for your property. Simple, right? Well, as any property owner will tell you, there are a lot more bills than you’d expect. Mortgage bills. Water bills. Sewer bills. Repair bills. Insurance Bills. Tax Bills. Wow, they add up in a hurry!

With All Those Bills, How Do You Make it Work?
Rent. You have to collect more rent than your monthly expenses. If your expenses are $2000 a month and your rent is $2200 a month you get $200 a month in Cashflow. If you can only collect $1800 a month in rent, find another property – because this one will eat you alive!

Okay, so My Cashflow is a Little Positive, Now What?
The Good News: Rent increases over time. The average is about 5% per year, but just like appreciation, there are good years and bad years. The first year is always the hardest. Rents are at their lowest and costs are at their highest, so if you buy with positive cashflow, you’ll be okay.

Quit Your Job?!?
You’d have so much more time to find good properties if you didn’t have that pesky job getting in the way, eh? It’s true, full time investors are snatching up all the great deals. So it’s every investors’ duty to quit their job, right? Well there’s a simple formula to quit your job: get enough cashflow to cover your personal expenses and you’re done, you don’t have to work anymore. Simple idea. Hard execution. Don’t expect to quit your job any time soon. Just keep buying good properties and managing the cashflow and over time, you’ll be free.