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Many have been in the same situation, and theres no need to worry.
This is easy because knowing the neighborhood well makes it easier for you to find affordable properties.
This could have been a morale booster, which paved the way for future investments.
This is exactly what Adde experienced when starting this business venture.
Focus on Cash Flow Over Quick Flips
Quick flips can be tempting when starting out.
Heres the thing, though: Flipping denies you the benefits of long-term appreciation.
Instead of quick profits, I focused on long-term cash flow, Adde pointed out.
I aimed to acquire properties that would generate consistent income, creating areliable revenue stream.
After a year or two, the cash flow strategy paid off.
Leverage Financing Smartly
Like most first-time investors, you may have limited funds, so you must get creative.
And thats where leverage came in.
For example, with a mortgage, you could buy properties you couldnt afford outright.
Over time, you will appreciate the propertys value and even getsome sweet tax benefits.
However, leverage is a double-edged sword.
It can help you grow your investment fast but also comes with risks.
Thats why you better focus on properties withpositive cash flow.
This way, the properties will pay for themselves and even make a profit.
The cash generated from profit on rental income or appreciation was put into purchasing the next property.
You should always use a 20% down payment on rentals to keep things safe.
It keeps your mortgage manageable and your cash flow healthy.
Leverage is powerful if you use it wisely.
Choose Emerging Markets Over Trendy Hotspots
Instead of going for trendy hotspots, always look for emerging markets.
But this should not be the case in the beginning.
Some people have lost money on trendy potentials with the promise of rental surges in the regions.
For example, you could invest in the outskirts of growing areas instead of pricey downtown areas.
By picking the right markets, you could see incredible returns of up to double within five years.
Better yet, it’s possible for you to still reinvest those profits to grow your portfolio.
Establish Strategic Partnerships
You need smarter people who are much more experienced than you are to partner with.
Collaborating with the best allows you to tap into undervalued markets that later become lucrative.
Here is the tip: Work withbrokers and consultantsspecialized in specific real-estate niches.
This is exactly what Adde did.
So you must have guys point you towardmarket trends, hotspots and regulatory shiftsthat you wouldnt otherwise know.
Work with experts to direct you to the best opportunities to grow your portfolio.
Final Take To GO
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