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EFFECTIVE Property Searching – #4 Cash Flow Expectations

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Real Estate Agent with Chicagoland2to4Flats.info

In this market where listings range so much by type and condition, it is so easy to end up on a wild-goose chase. What must occur instead is to learn to separate wheat from the chaff and hone in on what you want.

Here is some more of how we think an EFFECTIVE property search works. 

Establish Realistic Cash-Flow Expectations.
Remember, unless you put a huge amount down, the PRE-TAX CASH FLOW is never large on a 2- to 4-flat. Probably the TAX SHELTER will please you more (your tax advisor can help you understand exactly what’s involved). But even the post-tax net may not be that large. For most investors, it’s the third factor – PRICE APPRECIATION versus the small amount invested – that ‘seals the deal.’

By the way, even Commercial property (5-units plus) generally only break even on a pre-tax basis (unless you put more than 20-25% down). In other words, even for larger property, it’s not about short-term Pre-Tax Cash Flow; it’s Tax Shelter and Price Appreciation.

And this is just the start of what you’ll find at www.Chicagoland2to4Flats.info!!!

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