How can you change a negative cash flow property into one with a positive cash flow?
Here are seven tips which can help you turn things around.
1. Raise the [tag-cat]rent[/tag-cat], but not above what the market will bear.
2. Have your tenants pay all the utilities.
3. Carry a higher [tag-cat]insurance[/tag-cat] deductible and shop around for a better deal on your coverage.
4. Reevaluate your [tag-tec]property taxes[/tag-tec] and look for mistakes and loopholes where your property may actually have been overcharged. These “mistakes” are more common than you think.
(If you don’t want to do this yourself, you can hire the research to be done for reasonable fees)
5. Try a lease option with a qualified long term tenant.
6. Install coin-operated washers and dryers that all tenants will share instead of giving each unit the appliances as incentives.
For any unit that has seperate washers and dryers always charge more rent. They’re worth it.
7. Find an investing partner who can take some of the burden of this property off of you. Take the money saved and reinvest or buy the partner out later.
8. Remember that many real estate investors have been in your shoes. That brings us to the best tip of all which is to find a mentor. Go to your local real estate investing club and find someone with experience who will give you advice. There are lots of investors around who are willing to help newbies.