You hear the saying all the time; “Cash is King”. Well, in the buy and hold real estate world, cash FLOW is actually King. It is really the only thing that matters. I personally don’t care if the value of my investment goes up, down, or sideways (at least in the short term). The only thing that really matters is that the rental income covers all of my monthly obligations. This includes the mortgage payment, property taxes, condo/ strata fees, property management fees, and any maintenance required. I know that my money is made by paying down the mortgage over a period of 25-35 years, using tenant’s money to do so. If the value goes up, that’s a bonus. In … Continue reading
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