Once you master the basics, property investment becomes simple and accessible. One of the skills you should master before moving forward is using a property cash flow. Make sure you get your free cash flow worksheet at the bottom of this post.
What is a property cash flow?
A property cash flow is a tool you must use to help you make investment decisions; it helps you work out all your costs and your potential income.
A cash flow will detail all purchasing costs, all running costs and your expected income. Once you have all this data you can quickly work out what sort of return to expect and establish if the investment is worth pursuing.
One of the biggest mistakes amateur investors make is to artificially enhance the numbers to make them look better than they are – or put simply, they lie to themselves, but why? Novice investors can become so excited by a potential investment that they want to make it work. Often they will predict unrealistic rents or ignore costs.
This bad habit leads to property investment failure. Cash flow is king and must be protected.
How to create a cash flow
We want to make property investment accessible to as many as possible so we are giving away a free cash flow tool for you to use. It’s very important to understand how to complete the form so you can make sure you have an accurate cash flow and make informed decisions when investing.