Arlington Real Estate Investing & Real Estate Financial Planning™ Podcast - Warning - Risks of Rental Property Expenses When Investing in Real Estate

Warning - Risks of Rental Property Expenses When Investing in Real Estate

03/08/24 • 43 min

Arlington Real Estate Investing & Real Estate Financial Planning™ Podcast

Risk is all around us.

When we choose to invest in anything, we’re choosing to take on the additional risk characteristics of that investment.

For example, when we choose to invest in real estate, we choose to take on the risk characteristics of the specific real estate investing we opt to do minus the risk mitigation and elimination strategies we put in place.

One of the risks of investing in real estate is the risk of rental property expenses increasing.

James discusses those risks and how to mitigate or eliminate them in this mini-class.

Check out the video from this class here:

Warning - Risks of Rental Property Expenses When Investing in Real Estate - Video

In this class, James discusses:

A George S Patton quote about fear, risks and making decisions.
An introduction to Rent ResiliencyTM, Price ResiliencyTM, Vacancy ResiliencyTM, Property Insurance ResiliencyTM, Maintenance ResiliencyTM, HOA ResiliencyTM, Utilities ResiliencyTM, Capital Expenses ResiliencyTM, Property Management ResiliencyTM and Property Taxes ResiliencyTM
Eliminating some risk by using fixed rate financing options
How increasing expenses don't mean 1:1 reduction in cash flow
Options when Property Taxes get too high?
Options when Insurance gets too high?
Options when Principal and Interest change?
Options when Interest Rates rise?
Plus much more...

Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis SpreadsheetTM by going to:

https://RealEstateFinancialPlanner.com/spreadsheet

Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.

Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Arlington real estate investor podcast? Book a free consultation to discuss.

Warning - Risks of Rental Property Expenses When Investing in Real Estate

Risk is all around us.

When we choose to invest in anything, we’re choosing to take on the additional risk characteristics of that investment.

One of the risks of investing in real estate is the risk of rental property expenses increasing.

James discusses those risks and how to mitigate or eliminate them in this mini-class.

Check out the video from this class here:

Warning - Risks of Rental Property Expenses When Investing in Real Estate - Video

In this class, James discusses:

A George S Patton quote about fear, risks and making decisions.
An introduction to Rent ResiliencyTM, Price ResiliencyTM, Vacancy ResiliencyTM, Property Insurance ResiliencyTM, Maintenance ResiliencyTM, HOA ResiliencyTM, Utilities ResiliencyTM, Capital Expenses ResiliencyTM, Property Management ResiliencyTM and Property Taxes ResiliencyTM
Eliminating some risk by using fixed rate financing options
How increasing expenses don't mean 1:1 reduction in cash flow
Options when Property Taxes get too high?
Options when Insurance gets too high?
Options when Principal and Interest change?
Options when Interest Rates rise?
Plus much more...

Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis SpreadsheetTM by going to:

https://RealEstateFinancialPlanner.com/spreadsheet

Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.

Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Arlington real estate investor podcast? Book a free consultation to discuss.

Previous Episode

How to Analyze a New Construction Single-Family Home Property

How to Analyze a New Construction Single-Family Home Property in Arlington

Your ability to analyze deals is arguably the most important skill as a real estate investor. It allows you to make smart investment decisions and helps you avoid making career-ending bad decisions, such as buying cash-flowing-sucking vampire properties.

In this class, James will help you utilize The World's Greatest Real Estate Deal Analysis SpreadsheetTM (a free download) to analyze a new construction single-family home that you plan to buy as an investment.

Analyzing new construction is slightly different from analyzing resale properties, and James will cover these differences in this deal analysis class.

Check out the video from this class here:

How to Analyze a New Construction Single-Family Home Property - Video

Or, check out the deal analysis example for Arlington, Texas:

Deal Analysis for Arlington 5% Down Single-Family Home NomadTM Property

Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis SpreadsheetTM by going to:

https://RealEstateFinancialPlanner.com/spreadsheet

Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.

Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Arlington real estate investor podcast? Book a free consultation to discuss.

Next Episode

Deal Alchemy™ - Increasing Down Payment

Deal AlchemyTM - Increasing Down Payment

There are four primary returns from investing in rental properties: appreciation, cash flow, debt paydown, and the tax benefits of depreciation. Additionally, there is a secondary return in the form of the interest earned on the reserves required to make the investment in the first place.

Many real estate investors prefer the cash flow return over the others.

Often, we can manipulate the investment to shift returns between appreciation, cash flow, debt paydown, tax benefits, and reserves. We call this Deal AlchemyTM.

There are many variations of Deal AlchemyTM, but in this mini-class, James will guide you through the process of shifting your return to cash flow by changing the down payment amount.

In this class, James discusses:

The definition of alchemy
What is Deal AlchemyTM
How to manipulate returns and move them between quadrants
An example by increasing the down payment size from 20% down to 25% down and how that impacts your returns... in both dollars and on your overall investment
Plus much more...

Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis SpreadsheetTM by going to:

https://RealEstateFinancialPlanner.com/spreadsheet

Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.

Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Arlington real estate investor podcast? Book a free consultation to discuss.