I just landed in California. The weather is perfect here. It’s a little cold but nothing compared to Chicago. I’m actually here cause i put in an offer for a house in LA. I plan to return to Chitown on Wednesday.
Just wanted to mention a little about cash flow. This is important with any type of investment. For an investment property, you have to consider cash flow when making purchases. California homes are really expensive. The price per square foot is around $550. So most properties will show negative cash flow on investment. I can’t rent it out and cover the mortgage. You have to be creative or you could risk losing your investment and damaging your credit. With this new property, i plan on adding two units to the property. The land has an R2 zoning, meaning i could build additional units. If i can keep my construction costs low, i could arrange it so that i could cover the mortgage with rental income. We’ll see how it goes.
The great thing about internet business is that, you will most likely never run into cash flow problems. You don’t have to pay rent, or labor. You just need to pay 10 bucks a month for hosting. A blog can potentially make $27,000/ month(look at johnchow). That type of income is not impossible. John made a few hundred dollars with his blog last year. In a year, he’s turned it into a money making machine. Of course i’m not johnchow and neither are you. But if you apply yourself, you could make 10% of what john makes. $2700/month from a blog is not too shabby.