Monthly Cash Flow - Investment income property ownership's best feature
Properly selected properties can yield outstanding monthly cash returns. Monthly cash flow/passive income is especially important to retirees or others who wish to use the cash flow to help pay their monthly bills.
Short Term:
Cash flow simply means means monthly checks or electronic deposits sent directly to you.
Compared to traditional investments, this attribute makes cash flow real estate especially attractive.
Traditional investments, (stocks, bonds, and CDs), do not pay monthly investment returns. Traditional investment returns are often received quarterly, semi-annually, annually, or at investment term’s end, which could be after several years.
Meridian’s goal is to provide greater than 10% first-year cash-on-cash returns.
We have a successful track record with these returns at low risk. In the current market environment, 10% is a phenomenal return compared to traditional investments. Plus, the investment is a great hedge against inflation, as rents rise with inflation but mortgage costs remain fixed.
Investment property ownership has several tax benefits. Cash flow can be wholly or partially tax-deferred due via a depreciation write-off.
For example, cash flow from a 10% tax-deferred investment such as real estate is equivalent to over a 15% taxable return to an investor in the 35% tax bracket.
Long Term
Cash flow + equity increase (appreciation) + mortgage pay down = Total Internal Rate of Return (IRR)
Meridian Pacific Properties investment property IRR’s often exceed 17%, net of sales expenses over 5 years.
Income Property Turnkey Solutions
Turnkey – The advantage over do-it-yourself. Strong tenants and qualified property management in place minimize vacancy expense.
Meridian Pacific Properties renovates each of our properties to the highest standards. Our experience and expert team ensures:
- Each properly is rigorously evaluated and screened prior to renovation
- Each property is renovated to the highest standards, with attention to design and detail
- After renovation, each property is inspected by a third party for quality assurance
- Meridian's renovated homes are among the best properties in the neighborhood
- Our quality standards ensure higher rents and lower vacancy, key variables in cash flow and investment returns
Meridian Pacific Properties does the heavy lifting for you. After renovation, we ensure you have tenants and property management in place. We believe so strongly in our process and our investment product that we offer warranties on both the tenant’s payment of rent and the property maintenance for the first year.
Real estate investors are only successful when they draw upon a network of qualified, highly skilled service providers, especially when investing in other parts of the country. These key people include:
- Building Contractors
- Property Managers
- Leasing Agents
- Title and Escrow Attorneys
- Insurance Agents
- Lenders
- Appraisers
- Property Inspectors
Some investors have the time, the skills, and resources to build the right network. Most people do not. They are not sure where to start. (Think about how long it takes to find a good mechanic, a good pediatrician, a trusted house cleaner). Most investors are focused on busy lives balancing their family, jobs, and precious free time. Meridian has put a proven, road-tested team in place that has been carefully developed over the years to deliver a turnkey product that offers immediate positive cash flow and excellent returns.
High standards, quality associates, and a guaranteed turnkey product set Meridian Pacific Properties apart as real estate investment experts. We do the legwork and, more importantly, the hard work on each home we sell. Our premium products, customer service, and comprehensive guarantees ensure that you will be a successful investor from the moment you purchase one of our homes.
Read more: https://preview.meridianpacific.webnode.com/properties/turnkey-solutions/
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This Week's Question
The simple answer - because the numbers work. When we studied over 366 metropolitan statistical areas for the best investment property criteria, Memphis came out as a top performer in a variety of key areas.