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The positive cash flow property investment strategy involves purchasing property that will create surplus cashflow pre-tax.
This blog is aimed at property investors of all levels of experience, and covers:
There are many strategies that you can follow to target positive cashflow properties when starting your search and also to manage these properties to help boost cashflow.
Rental yield is a measure of how much cash an investment property produces each year as a percentage of the property's value.
The gross rental yield is a simple calculation to use, it doesn't take into account the expenses of the property.
(Weekly rent x 52) / Property purchase price x 100
A property may have a high gross yield for example, but also have high expenses, making the net yield low when these are taken into consideration.
To work out the net rental yield, you will need to know the total expenses of the property. You can then use this formula.
(Annual income - Annual expenses) / (Total property costs) x 100
Editors note: This blog was updated with new videos on 24 October, 2016.
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