Cash flow is one of the most important considerations investors face when making real estate purchases, especially now that so many markets across the country are struggling. Investors seeking high-income property should take cash flow into account first and foremost when deciding whether or not to buy.
Cash flow refers to the amount of cash coming in relative to the amount going out. While appreciation is often the most significant form of profit for real estate investors, cash flow is easier to determine and lower risk.
Although many elements combine to influence cash flow, one of the most important ones is the surrounding market. Areas with lower home prices are more likely to have positive cash flow. Las Vegas real estate is a tremendous opportunity for real estate investors right now. Property values have plummeted since the peak of the market in 2007. The rental market is strong and rental rates more than align with property prices in the area. Only in the Las Vegas real estate market do you have the ability for short term monthly cash flow with the probability of long term appreciation.
As we know the economic down turn has impacted most of the country and the world. Because of this there are many opportunities in the US for real estate investment. The place that makes the most sense is Las Vegas. The housing market hit Las Vegas the hardest. Along with historical data on the real estate market in Las Vegas, I believe there is an incredible opportunity in the Las Vegas market.
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