The affordability of starter-homes has hit a decade low and Bloomberg says that the US housing market is cooling because prices are just too high. First time buyers need 23% of their income to purchase a home. Just a year ago that figure was 21%. The cost of these starter homes is the highest it has been since the housing bubble blew up back in 2008.
Dan Lieberman’s The Effective Landlord is an essential read for any property investor or manager. It contains the basic formula for acquiring low quality properties and turning them into reliable positive cash flow machines.
Attractive properties can command higher rents.
Higher rents at desirable properties attract higher quality tenants.
Higher quality tenants commit fewer damages and move out less often.
Fewer damages, move outs, and higher rents generate greater profits.
Greater profits allow you to invest more into making properties more attractive.
And on and on as your wallet gets fatter and fatter and your tenants become happier and happier.