It’s no secret that people enter the world of real estate to make the income they need that allows them to enjoy life comfortably. However, in most cases, and possibly your own, people wonder how some are able to afford lavish travels and getaways with their property investments alone. It’s actually quite simple once you’ve got yourself locked into several properties at once. If you seem to be completely lost on being able to keep your head above water financially, we’ve got a few tips that should do the trick and then some. Here’s some ways that you can fund your travels with buy to let properties.
- Living off the LandMikeBehnken
Never Leave Your Property Empty
Obviously to be consistently making your money back, you want to buy to let your property. But if you’ve got an empty apartment or house, you’re not making any money off of it. In fact, you’re losing money in the short term, even if you’ll see a high return in just a few years when the housing market rises. Making 5% on your mortgage with a tenant in place is better than making nothing at all. Of course you want to shoot for a target 8-10% profit on the mortgage payments from month to month, but if the market doesn’t seem to be fitting of that, making a sacrifice for a lower profit margin is still making a profit for you.
Always Be Buying
The key to making money month after month in such an amount that will leave you funding your travels with no problems is to continue buying properties. Initially, you’ll be a little bit in the hole with all of the investments that you plan on making, but you’ll eventually recover quite quickly once you’ve got tenants. One home isn’t going to do you much good in the way of income, but 20 of them could provide you with quite the living, provided you’re able to keep track of all of your homes.
Move Your Profits to Savings
When you put your profits in a savings account, it’s like getting free money. Only pulling out what you need to live comfortably gives you some room to make money off of the interest collected on the money you’ve got stowed away. Don’t be afraid to keep things kind of close in your checking account. You can always pull from your savings if need be.
Take out the Middle Man
If you’re really trying to save, don’t bother going with a property management company. You could be losing about 30% of your profits to management companies. While you’ll end up doing much of the leg work yourself, you’ll also be putting money in your pocket. Once you can afford to take the trips and have a property management company in place, then it makes sense, but until then, make sure to keep out anything that could be taking money from your pocket, as this could also result in you having to wait a longer time for your next trip.
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