I was reading through a blog page that I frequent today and came across this article written by Kevin Park from
http://www.smarterlandlording.com. This is a fantastic article about 5 reasons your property may not be producing the cash flow you desire. I wanted to share this with our readers so they could ponder if any of these apply to them. You may read the entire article at http://www.biggerpockets.com/renewsblog/2014/07/28/five-reasons-property-cash-flowing/?inf_contact_key=e252d4d7e1ab69967231dd85d1a1ad0eb8330c191512d9e5b1c28d29400d2b37“1. You Paid Too Much
In real estate, you make your money when you buy, not when you sell.
If you pay too much for a property you will be on a losing streak right from the get go. Paying too much is perhaps the number one reason properties do not cash flow. To avoid paying too much you really need to know and understand your market. Study it long and hard.
Look at dozens of properties before you buy. If you have already bought a property and are under water, you may want to seriously consider unloading it for a loss to stop the bleeding. Chalk it up to experience and move in.
2. Your Rents Are Under Market
Rents across the country have been going up, up, up.
Unfortunately, so has everything else such as taxes, utilities, insurance, and repair costs. Have your rents kept pace with these rising costs? If not, you may need to check to see if your rents are at current market rates.
Check local ads on Craigslist. Call nearby for rent signs and talk with other investors to determine the best market rents for your property.
Related: Is Now a Good Time to Raise Rents?
3. Your Turn-Over Is Too High
Tenant turn-over is a cash flow killer.
Long term stable tenants are a key to generating positive cash flow. To reduce turn-over, screen out frequent movers. Keep your rents in line with your local market or perhaps even a bit under market if you can.
Be attentive to tenant needs and requests. Keep your properties clean and maintained.
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