In case you missed this video when it was aired earlier this year, we bring it back again. Don Campbell puts forth a solid argument for Edmonton and Calgary's real estate future.
If you are new to investing, you'll need to add several more lines of expenses to Don's example. Perhaps his 'miscellaneous' item covers some of these but in addition to your P.I.T. (principle, interest and tax payments) you'll need to add: vacancy factor, repair factor, property management (even if you do it yourself, factor it in as one day you might pass it over to a manager), advertising costs and insurance.
We also add bookkeeping costs, but you may feel you don't need that. These additions will give you a realistic cash flow number and it will be significantly less than the cash flow number derived from P.I.T./misc. alone in the BNN video. If you have money left over from repair/maintenance at the end of the month that goes into your account to build a buffer for the unit.
Watch Video Here
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