Positive Cashflow vs. Median Price

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From: Anonymous


Newbie question for those who purchase positive cashflow properties:

I notice a number of people (e.g. Peter Spann) recommend purchasing median priced properties for a number of reasons. From the (pretty limited) looking I've been doing though, you need to go well below median price in order to get positive cashflow from day 1.

Am I correct, or is it possible to find median priced *and* positive cashflow properties? Is median priced property still preferable for those seeking positive cashflow?

Thanks.
 
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From: Debra L


If you can find a median priced property that has dual income potential, ie a bungalow out back or a built on self contained unit, then often the combination of the two rentals will help convert what would have been a negatively geared property, into becoming a positive cashflow one.

Debra
 
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From: J Parker


The other alternative is to buy in an area (say rural) where properties are under $100K, as you can often achieve positive cashflow. I did this and am getting a good return. Property bought for $85K- rented at $160 wk. I didn't improve it at all, either. Will do this in the future, however, when it becomes necessary. Hope this helps.
Cheers, Jacque :)
 
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