Business Plan for cashflow
Every real estate investor who owns or intends to purchase investment properties generally aims for it to be positive cash flow. That is, the income exceeds the expenses. T here are certain exceptions to this rule if one takes a portfolio approach but it is a rule that generally holds true. The example I always give is that I have never heard of an employee who takes a job strictly for st ock options and forgoes a salary. The one thing I have never seen with real estate investors is that they do not have a clearly written business plan for their positive cash flow. There is no mention as to whether they should reinvest it by paying off the mortgage, purchasing another property or even other assets such as precious metals, paper assets (stocks, bonds), cryptocurrencies etc. This makes no sense as the excess cash flow can be a fo...