Par 4 Properties     (559) 225-5952

PAR for investing wisely in rental property is the accumulation of wealth and a steady income stream

Real estate investments do not always generate immediate cash flow.  Substantial down payments are often needed to generate current cash flow.

In the long run (5 years or more), the inevitable property appreciation and equity build-up results in wealth and positive cash flow.

The amount of equity needed to generate positive cash flow increases as the expected appreciation increases.  If there is little appreciation expected, then investors require greater cash flow.  If there is swift appreciation in the market then cash flow becomes less important.

It is interesting that investors in real estate often expect to put 0% down and receive a positive cash flow.  If this were possible then everybody would be buying property and the prices would be driven up and the cash flow down.

These same investors make stock market investments that produce no current cash flow and only a hope of increased value.  They would never even think about financing stock purchases especially not 90% of the cost.  So why do they have such unrealistic expectations of real estate investments which seem to have less risk?

PAR 4 Properties is owned by  Bob Hooke       Robert E. Hooke 4025 N. Fresno #104, Fresno CA 93726 California real estate broker's license #00620183

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