Archive for April 24th, 2007


Longer Mortgages increase your cash on cash return

Written by Marc on April 24th, 2007 with no comments

If cash flow is your priority in your real estate investments, you probably have considered many options.  Such things as adding a suite, renting out the garage, or turning a portion of the yard into a parking may have been some options that you have considered.

You probably have tried to lower your expenses as well.  This can be very effective in increasing your cash flow.  Most owners look at reducing their utility costs as a primary means to reduce expenses.  But, have you considered amortizing your mortgage over a longer period of time?

By extending the length of your mortgage over a longer period of time, you can increase your cash on cash return significantly.  Consider the following example …

Read more articles on Real Estate Investing.