1 . You make your money at the purchase .
2 . Cash Flow is king .
3 . Location .
THE BEST INVESTMENT OPPORTUNITY AVAILABLE TODAY THAT THRIVES IN BOTH GOOD AND BAD ECONOMIC TIMES MIKE CONLON
1 . You make your money at the purchase .
This phrase means you must understand your local market and find a property to buy that is trading below market prices .
2 . Cash Flow is king .
You never buy a property that isn ’ t cash flowing day one . I can show you several ways to increase cash flow , but you never want the pressure of having to “ feed ” a negative cash flow property .
3 . Location .
If possible , you need to buy properties within 20 minutes of a major ( 200,000 people +) metro area as that ’ s where the jobs are . The key to a successful affordable housing property is that your tenants have easy access to lots of jobs .
Remember what my financial planning client said , that affordable housing does well in “ good and bad times .” Since the economic meltdown of 20082009 , the demand for affordable housing has gone through the roof as millions of people have been forced to downsize . At the same time , the supply of affordable housing is at an alltime low as there has been very little affordable housing built in this country over the last 20 years because the land and infrastructure costs are too expensive . This is an Economics 101 perfect storm : big demand with limited supply means prices are going up and occupancy levels are at all time highs , whether it be in affordable singlefamily houses , affordable apartment complexes , or manufactured home communities . And I don ’ t see any let up in this scenario as more and more middle class Americans fall into the lower class due to lower paying jobs and higher costs for everyday necessities like gas , groceries , education , health care , etc . Fortunately for my business , and unfortunately for the country ( in my opinion ), the gap between the rich and the poor continues to grow wider , which increases the demand for affordable housing . More than 50 % of the country is now in a household that makes less than $ 44,000 / year , which means they can only afford $ 500 $ 700 / month in total housing expenses . Recent statistics show that nine out of the ten most prevalent jobs needed in this