You have to have enough savings on your own personal finances to pay for periods of change or bad fortune. Real estate investors need savings for exactly the same purposes.
Property can be an excellent investment if you have some time to educate yourself about the rules and the most effective methods of getting fantastic yields. But most people that are considering purchasing rental properties or property as an investment are missing out on a great opportunity.
Money flow is the cash you earn from leasing properties each month after all costs are paid. The excellent thing about money flow is that it raises over time without eating away in the principal investment. Money flow will even increase over time since rents will go up with inflation whereas your mortgage payments remain the same. Finally, you’ll pay your loan off and also your cash flow will grow appreciably. That what we call reliable saving.