Getting Started in Rental Income

PART 1: Approaching the Market.

Chapter 1: The Traditional Approach: Buy, Hold, Hold a While Longer, Sell.

Studying the Rental Income Market.

Advantages to Long-Term Investing.

Disadvantages to Long-Term Investing.

Deciding When to Sell.

The Positive Long-Term Experience: A Matter of Management.

Chapter 2: Financial Aspects: Keeping the Cash Flowing.

Leverage and Real Estate.

Mortgage Payments and Rental Income.

Rental Expense and Tax Calculations.

Tax Planning for Rental Income Property.

Chapter 3: Fixer-Upper Alternatives: The Flipping Market.

The Flipping Concept.

Attributes of High-Potential Properties.

Quick Fix versus Expensive Problems.

Importance of Home Inspections.

Estimating Time and Cost Features.

Rental Income during Your Hold Period.

Chapter 4: The Fixer-Upper Property: Abused Homes with Potential.

Attributes of Fixer-Uppers.

The Importance of Appearance.

Recognizing Market Potential: Valuation Theories.

The Unattractive Property: A Quick Fix.

Creating a Budget.

Checklists of Neighborhood and Property.

Classifying Expenses: Cosmetic or Expensive.

The Buyer Psychology.

Chapter 5: The Combo: Long-Term and Fixer-Upper Portfolios.

Investment Portfolio Planning for Real Estate.

Conversion: Fixer-Upper to Long-Term Hold.

Fixing-Up Expenses in Conversions.

Combining Both Types in Your Portfolio: Limitations and Guidelines.

Living in Your Fixer-Upper.

Personal Limitations.

PART 2: Rental Income Investment Planning Strategies.

Chapter 6: Cash Flow First Aid: Stop the Bleeding, Do CPR (Cash-Positive Reasoning).

How CPR Works.

Studying the Essential Cash Flow Problem.

Guidelines and Suggestions: Managing the Profitable Situation.

Cash Flow and Fixer-Upper Time Restrictions.

Calculating Rental Property After-Tax Cash Flow.

Chapter 7: Taxing Matters: Inevitable but Advantageous.

Real Estate Tax Rules.

Depreciation: The Basic Rules.

Figuring the Base for Depreciation.

Tax-Deferred Exchanges.

Chapter 8: Risky Business and Rewarding Business: Comparisons.

The Nature of Risk.

Comparative Risk Analysis.

Features Defining Risk.

Tax and Inflation Risks.

Mortgage Cost Risk.

Chapter 9: Diversification and Allocation: Many Baskets and Many Eggs.

The Purpose for Diversification.

Forms of Diversification.

Why Some Portfolios Are Not Really Diversified.

Review and Change.

Chapter 10: A Long-Term Investment View.

Cash Flow versus Profits.

Identifying the Profit Margin.

The Importance of Turnover.

Fixer-Uppers and Your Financial Plan.

Long-Term Rentals and Your Financial Plan.

Checklist: The Key Ingredients.

Glossary.

Index.