I have spoken before about the 4 Benefits of real estate investing. And in many parts of the country the first benefit, Cash Flow Before Taxes, is very hard to obtain. But here in the Greater Kansas City area it’s pretty tough not to do…at least if you come in with some capital.
- Vacancy rates.
- Maintenance fund for general repairs.
- Lawn care fund even if tenant is mowing.
- Sinking fund for that roof that looks like it’s almost done, or the furnace, or the water heater, or the foundation, etc.
- Administrative costs like LLC expenses, travel and tax preparation.
That’s not an all encompassing list. But unless you want your personal account to continue to kick in for your rental property until you sell it 5-7 years from now you will probably want your rental property to pay for itself, right?