expert-q-a

Investors ask: Improving cash flow

By Helen Collier-Kogtevs

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.

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 

Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%
Investors ask: Improving cash flow
SPI logo