How to Make Monthly Income: 3 Methods for Real Estate Investors
Have you always wanted to learn how to make monthly income? Well, today we explore 3 methods for real estate investors.
As a real estate investor, you likely believe cash flow is king. Because why else would you put your hard-earned money into value-add propertied?
Hopefully, a lot of it.
But let’s take a step back and ask ourselves:
“What is cash flow?”
Because, the truth is, all of us have different goals, expectations, and perspectives when it comes to making money off our investments.
There tends to be 3 popular approaches to cash flow. These include:
- Putting less money down
- Making monthly income
- Using cash-out refinancing to gain the most leverage
All of these cash flow methods share two common similarities:
- Using the BRRRR method.
- Buying discounted properties (non-MLS listed properties).
Let’s take a closer look at the second cash flow approach:
Making monthly income.
This is probably the most common strategy among real estate investors, because most of them like to create a consistent monthly income. Why? Well, probably because they want to:
- Replace a full-time job;
- Supplement their current income;
- Or create a nice sized nest egg for their future.
Let’s look at an example.
Jane the Investor doesn’t mind putting SOME money down at closing. And, on top of using the BRRRR method and buying discounted properties, she tends to focus on 3 methods to ensure she makes positive monthly income.
What are these 3 methods? Well, let’s take a look.
- Focus on maintaining a healthy credit score. The higher your credit, the better your rates, which means you pay less money to the banks and keep more money in your pocket. Every. Month.
- Choose investor-friendly real estate lenders who offer options. We’re not just talking about one or two options, but many. More options means better financing. And better financing means, yet again, less money to the bank and more money in your pocket.
- Invest in higher quality properties. That means putting some work into a value-add property so it’s, well, nicer. Nicer properties tend to draw tenants who treat the property, well, nicer! They’re more respectful and cause less damage than tenants who rent lower quality properties. Better yet, when a property looks nicer, it tends to be more desirable. That means demand increases and you can charge a higher rent. And higher rent means higher cash flow.
So, there you have it! If you’re looking to generate solid, consistent, monthly income, then this would be a great strategy to take.
Ready to discover how you can make a good monthly income? Great, our team is here to help.