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Investors ask: Improving cash flow

Investors ask: Improving cash flow

By Helen Collier-Kogtevs | 28 November 2014

Q. I need to balance out my portfolio, so – other than waiting for the rental market to improve and paying down my loan ahead of time – is there anything creative I can do to turn a cash flow-negative property into a cash flow-positive one? 

A. When it comes to creating positive cash flow, a great strategy is tapping into student accommodation.

Now, I don't mean specifically-built, tailor-made student accommodation. I'm talking about a house near a university where you can rent out each room to students.

So, four bedrooms, four students, four lots of rent. But here's the exciting part. What you could do is add a vending machine into that property.

Obviously, you'd also provide internet, because students need it for their studies, but that vending machine? Well, I know investors who make more money out of that vending machine than they do the rent, because what don't students like doing? Cooking.

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So, if you're looking for some smart and out-of-the-box ways to create cash flow, have a look at houses around universities where you can put students in, put in some internet, maybe throw in a cleaner to make sure your property is well maintained, and a vending machine, and watch the cash flow in.

Helen Collier-Kogtevs, director, Real Wealth Australia 



Investors ask: Improving cash flow
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