Golden Rule #2 for property investment: Making it self-sufficient
If you missed Golden Rule #1 for property investment that I shared yesterday, be sure to go back and read it! Today, I want to share with you one of the fundamental principles that has been instrumental in my property investment journey – Golden Rule #2: Make your properties pay for themselves (or close enough).
In the world of property investment, achieving financial success is a dynamic process, and rule #2 plays a crucial role in ensuring that your portfolio continues to thrive. The essence of this rule is simple yet profound: strive to acquire properties that are cash flow positive.
Why is this rule so significant, you may ask? Allow me to shed some light on its importance. When you break this rule, and your properties are not generating enough income to cover expenses, you risk depleting your financial resources. Ultimately, this could hinder your ability to acquire more properties, causing your portfolio’s growth to come to a standstill.
On the other hand, when you adhere to rule #2, your properties essentially become self-sustaining financial assets. They not only cover their own expenses but also contribute positively to your overall cash flow. As long as you maintain leverage and equity, you can continue to expand your property portfolio indefinitely. It’s the key to building a thriving and prosperous investment portfolio.
In conclusion, if you aspire to be a successful property investor, let Golden Rule #2 guide your decisions: always aim to buy properties that are cash flow positive. This strategic approach will not only safeguard your financial stability but also empower you to keep growing your investment portfolio, providing you with a secure and prosperous future.
Join me for the Golden Rule #3 up next!
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