How to Make Rentals Cash Flow With 8% Mortgages

⭐ Join Rental Property Mastery, my coaching & learning community:

🎙️ Episode 316 - Buying a rental with a conventional 8% mortgage is a recipe for negative cashflow. Instead, I'll teach you 4 powerful strategies to make deals work in today's high-interest market.

📄 Show Notes:

🎬 Topics Covered:
0:00 - 8% Interest + High Home Prices = Disaster
0:51 - The Huge Difference Between 4% & 8%
4:33 - Why Buy Low and Sell High
5:37 - How to Pay ALL Cash
8:20 - Private Lenders Love This
11:39 - Finding Sellers to Become the Bank
15:07 - Taking Over Low-Interest Mortgages "Subject-to"
19:20 - Final Thoughts

--------------------------
⚒️ Get my FREE Real Estate Investor Toolkit:

🖥️ My Real Estate Courses:

[FREE COURSE] Find Your Focus in Real Estate for Beginners:

30 Days to a Better Rental Investor:

Creative Financing for Real Estate Investors:

📘 (My Book) The Small & Mighty Real Estate Investor:

📙 (My Book) Retire Early with Real Estate:

💰 DealMachine - Software to help you buy more real estate deals:

✅ Subscribe for more videos about real estate investing:

👋 Connect with me:

[chartovar]

We need as many strategies as possible to continue to invest in an 8% market. As always, appreciate it Coach!

[DemetriceThomas-sm]

I usually just listen to your channel through Spotify, However, your book giveaway advertisement brought me here. Your content is both informative and entertaining, thanks coach.

[ajanelson]

You keep things so simple to understand! I so appreciate you!!

[lhoi]

Wow, You're simplifying things to make them easy to understand.

[susanseniceros]

I love seller financing deal, but it’s not easy to find it. Thank you for always sharing your knowledge

[TheNetwork]

Just what I needed to hear and confirm my thoughts about a scenario I’m going through. Thanks Carson new subscriber 🙏🏼🙏🏼

[anthonydooley]

$54 per month of cash flow is zero cash flow. $150 is not worth the risk. Negative cash flow means that I keep looking for a better deal. Buy low and sell never. Remember, future growth is speculation, not investing. $200 per month? As Grant Cardone would say, you can make $200 by standing on the corner panhandling. How about buying a cheaper house?

[bluntforce]

Speaking to a guy who made millions in 2008 opened my eyes …rates then were 7-8% and he said that was good for the time…but homes prices went down…if the current 7% drops people on sidelines will jump in making the house prices stay stagnant or increase even more…so if your on the fence then take the leap and pray interest goes down and you can refinance…also don’t max yourself out…if you’re prequalified for $400k don’t use 400k buy a home for 300-350 that way if you can’t make the payments for whatever reason you can go back to the bank and borrow the remaining amount you were qualified for..buying you time to get back on track…also when you’ve paid down the house you can refinance and take that money and roll it into another property without paying taxes…you only pay when you cash out if down properly

[wrt]

Thanks Coach Carson! Love to see more content on creative financing

[mike]

You CAN cash flow on 8%. However. No admins. No analyst. No corner office. Yep you have to “self manage”.
Look, guys. The 3.5/4% interest rates in commercial are gone. That’s why we all had that one relative that had 1 apartment building.
All of your YouTube “geniuses” didn’t ffigure anything out. Other than buy with lowest interest rates in history at the same time the lowest valuations.
Pace. Chandler. David. All of you guys. Right place. Right time.

[rubayyatkhan]

Great content as always. I’m looking in Wichita, KS.

[dixonbuttes]

Why doesn’t anyone appear to account for normal wear and tear repair savings in these operating costs? Cashflow is great until you have to repaint, or refloor, or put a new furnace in a rental. Over 15 years of landlording, I’ve found that actual NWT costs are about $0.11 per finished square foot per month. Why does most advice not appear to account for this? If we did, perception of income would shift a lot.

[hubbajue]

Where do you continually get the $60, 000 down? We own several properties. We use BRRRR method. We do not have $60K for down unless we stockpile the monthly cash net profit.

[deficator]

Cash flow is only worth i if the market is going up like it always does. but if ur cash flow negative in a bad or slow market or after a downturn u can be stuck topping up the mortgage on ur rental for a looong time. The only challenge is staying solvent.

[levanchuong]

If the interest > net cashflow + appreciation. Just forget the deal, because no mater your tactics, you always work for the bank, not for yourself.

[AmezcuaREI]

One thing that I find to be true is that it’s much harder to figure this out as a newbie investor starting in 2023/2024. People who have a few deals under their belt during easier market conditions understand the process a lot better and these principles are much easier to apply. Not to mention, they look much better on paper to a potential partner or seller. I’ve been laughed at constantly over the last 60 days when trying to buy with seller financing while having no experience and no portfolio.

[tehshorty]

How do I try to convince a seller, when I have to go through the RE Agent? Im thinking that I can write out the deal and have my RE agent present it to the sellers agent. The houses in my area are going SO fast, and for cash. I did get discouraged.

[juniorcrandall]

If rates stay high for several years, owner financing becomes easier. With that said a polished presentation will close a deal.

[oMDK]

Are we ignoring the median US home price of $416, 100?

[nathanc]

They a fewer in number, but im seeing cheap deals, but they are all very dilapidated. Its all value add stuff. They are %10-20% more expensive than 4 years ago. It's still money