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Rental yield is an investor’s return from rental income on a property. This yield can be calculated in a couple of ways, and you may want to do both, as they each have their place in your assessment of a property’s suitability to your investment objectives. We’ll look at Net Rental Yield and Cash-on-Cash Yield. We will self-manage the property, so there will be no property management cost included in either calculation. Another assumption for both calculations is a 5% vacancy rate. Finally, we’ve purchased the property for $150,000.

Net Rental Yield:

As real estate investors constantly in search of a bargain, we obviously are drawn to short sales as a way to buy properties at steep discounts to market value. And, as a basic strategy, this is a viable approach to profitable real estate investment. The problems come from the process and the time restrictions to get it done before foreclosure or bankruptcy.

Real estate investing is by far the most rewarding thing I have ever done. I can honestly say that the worst day I have ever had in real estate, is still better than my best day I ever had at my job. One of the most rewarding parts of real estate is buying a piece of property significantly below market value. Not only does that make you feel good, but all of your friends, partners, and definitely your banker, feels good about it also.

There are many real estate investors who want to own a positive cash flow rental property, but they end up purchasing it tenant-ready or occupied. Perhaps they have no desire to work with contractors or accept the extra risk of the renovation process. And, there is room for all investment strategies. However, if you’ve considered the renovation to retail process, it’s all about the team and your due diligence in selecting the members.

Clyde Coleman
Charles Keevil
Allen Hart
Daniel Lee Wilkins
Richard Robinson
Georgia Cuddeback
Andrea Butterfield
Lori Rew
Matthew Campbell
Zachary R Wilson
Mireida Rodriguez
Roger Johnson
Vernon Collins
Nicholas W Fletcher
Dwayne Mitchell
Jennifer Webber
Danielle Holleman
Keith Baskerville
Francis & Marjorie Reca
Donna Lupien
Hector Ossa
Brian & Barbara Davis
Danny Howard
Cheryl Pisano
Jerome Riles
Renato Atienza
Nick Sahl
Albert Delgado
Horacio Galaviz
Curtis & Adorthy Harris
Karen Oliver-Jallow
James R Butler
Brendan Ripley
Michael Calise
Kevin Boyer

The buy and hold for rental approach to real estate investment is the most popular, but it isn’t the only way to realize a great return from real estate. In fact, the investor who wants to buy and hold frequently isn’t one who wants the hassle or added risk involved in the distressed property purchase and renovation process. They become a very good customer for the flip investor.