The benefits of foreclosures for investors.
With the Baltimore real estate market prices so low the past few years, many people have taken up investing in Baltimore real estate foreclosures due the many benefits. Who wouldn’t want multiple streams of income filling up their pockets month after month? Cash flow is essential to building wealth and Baltimore real estate is a surefire way to get that cash flowing.
Not only can you cash in on monthly rent payments from tenants, but you can also earn money by late fees, rent increases, offering extra options like lawn care or snow removal, and tax rebates.
Cash flow via other means.
Some landlords don’t charge tenants late fees, but it is a good idea to do so. They may not want to bother with the hassle of collecting late fees but over time those fees can add up to hundreds of dollars per year. If you charge late fees and stick to it, your tenant will either begin paying on time or you will get paid more every month. If they move out, it gives you a chance to get a better tenant in there.
Once the lease period runs out, you can increase the rent slightly to make just a bit more money that year. A little increase should not upset the tenants and just that little bit can add up. If you have multiple properties, that can mean thousands of dollars per year.
Offering lawn care or snow removal services is another way to have more cash flow. Some people will not want to cut their grass or shovel snow, so offer this as a service for a specific amount of money per month. Every little bit of cash flow is good.
Tax laws can work in your advantage as well. You can purchase tax certificates and perhaps at the end of the year be looking pretty good when you sit down to do your tax return. You may even get a refund and be able to use that money to put down on another rental home.
Start with just one.
If you have not thought about investing in (city) real estate to increase your cash flow, I’d advise you to think it over. You don’t have to think about having ten or twenty homes, as that may sound overwhelming. Start with just one. If you purchase a foreclosure and rent it out for a solid price, you could generate an extra $300 to $500 per month cash flow depending on the purchase price and location of the home. That is not a bad bonus each month for virtually doing nothing.
The hard work of Baltimore real estate investing is at the beginning- looking, selecting, fixing up the property, and then finding a tenant. Once all that work is done and aside from occasional minor repairs, you can usually be free to go about your business and just let the cash flow roll every month.
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