Another way to make money out of real estate is by buying and selling again for a profit.
If you want to be financially free don’t do this… you need cash flow. A true investor buys and holds.
The only reason we decided to ‘do-up’ and sell our next property was that it was ‘border-line’ positive cash flow and we couldn’t find any way to get more out of it. The section wasn’t big enough to add a minor dwelling to.
It took us a week or so to clean up the house…paint, carpets etc and a bit of landscaping. See the difference! And we sold it for a good profit.
We first heard about this technique from Dolf de Roos. He referred to it as a $20,000 weekend (or week in this case!).
Don’t do this too much or the IRD will regard you as a trader and come after you! (In NZ anyway!)
Not bad, huh?
Being the CEO of Your Own Life 