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Podcast: Rochester Real Estate Investing & Real Estate Financial Planningâ„¢ Podcast
Episode: Deal Alchemyâ„¢ - Cash Flow to Debt Paydown
Description: Deal Alchemyâ„¢ - Cash Flow to Debt Paydown
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 Alchemyâ„¢.
There are...