Flat Fee Landlord reposted this
Stop expecting your rental property to give you money every month. That’s not how I look at it. It’s an investment, and investments go up and they go down. Instead of thinking of it as a cash flow machine, I treat it like a forced savings account. Just like when you get your paycheck and part of it gets pulled for your 401k, that’s not cash flow. That’s money going into something that could grow over time. Same thing here. Even if you’re negative each month, it’s still building equity. It’s money coming out of your paycheck and into your property. And just like your 401k, in ten years, that property is likely to be worth more than it is today. It’s still money that’s working for you, just in a different form. People forget that. They expect their rental to spit out money every month. But your 401(k) doesn’t do that either. You can’t even touch it until you retire. That’s how you should be thinking about your rentals, too.
Real Estate Investor | 30+ Yrs Experience | Helping Investors Earn Double-Digit Returns | Capital Partner | Passive Income Strategist
2wI'm with you Mo. If there is 75k in equity and its increasing to $100k in another 3 years etc, that is exactly the mindset of a 401k hold that I embrace. I always imagine have $100k in equity and then buying 10 properties over the next 2-3 years that will ultimately land 1 million+ in equity later down the road. Good way of looking at the rental income by looking at the big picture 👍