Lex Levinrad Real Estate Investor, Speaker, Author & Mentor

On today's podcast episode I talk about buying rental properties. I talk about cash flow, appreciation, and the tax benefits of buying rental properties - especially if you have a steady job and have a lot of taxes being withheld from your paycheck. I also cover the "myth" of investing in rental properties where beginners think they are going to sit back and collect the cash flow. In reality, many times in the first few years of a rental property there isn't that much cash flow. The trick is to buy the property below market and to capture equity. If you do that then you increase your net worth the day you buy the property. Even if your cash flow is only moderately positive when you buy, it will be much more positive when you refinance. This only makes sense if you gain equity when you buy. That means you should be buying wholesale deals at wholesale prices. Over time you will be able to raise rents, and your equity will increase as well. If you are smart, you will put a 15 year mortgage on that property and o