In this episode, Cheryl and Rychen discuss:
- Why appreciation shouldn’t be primary
- Understanding cash flow
- Making sure your taxes are in order
- When hiring property managers
Key Takeaways:
- Appreciation is the icing on the cake and shouldn’t be the only way you can make money on a property that you choose. The ingredients of the cake is cash flow, principal reduction, and tax saving.
- Understanding cash flow means considering what risks you are willing to carry. Consider how much monthly rent you’re getting per $100,000 of purchase price to see if the property is worth looking over.
- The moment you touch the money from your sale, that becomes a taxable event. That’s why you need a 1031 intermediary to make sure that everything gets done in the proper way and order.
- You’ll make more money buying and selling property than managing your property. You’ll spend about 10%, if you decide that it’s not worth it, you can do it on your own. There are a lot of resources out there, but it might get tedious.
“Four quadrants of real estate investing: Cashflow, principal reduction, tax savings, and there’s appreciation, the icing on the cake. ” — Rychen Jones
Connect with Rychen Jones:
Website: http://rychen.bhurdinutah.com/
LinkedIn: https://www.linkedin.com/in/rychenjones/
Instagram: https://www.instagram.com/rychenfamous/
Get in Touch with Cheryl:
Website: www.cherylknows.com
YouTube: https://www.youtube.com/channel/UCwvWKXBC6fKn1dLGY11hxIg
Facebook: https://www.facebook.com/dynamiteproductionsinc
LinkedIn: https://www.linkedin.com/in/cherylknowlton/
Show notes by Podcastologist: Justine Talla
Audio production by Turnkey Podcast Productions. You're the expert. Your podcast will prove it.
