Houston Real Estate Resources

In some ways, rental properties are like reptiles. They don't need to be fed every day, but periodically, they do require a rather substantial meal.

For example, let's say that you have a pretty decent rental with about $200 per month in positive cash flow. Great! That's $2,400 extra dollars of income a year! But...not so fast. This extra money is critical to your success as an investor, but it should be looked at as part of the reserve you should keep on hand to feed your rental when it gets hungry.

So, let's say that in your pretty decent rental, you have a pretty decent tenant that pays their rent on time every month for two years. Great! That's $4,800 extra dollars in the bank. But, like I said before, not so fast. During these two years, you were only plagued periodically with small maintenance items. There was a little trouble with some ants which cost you $95 in pest control. Then the plumber had to pay a visit - that was $200. And, of course, the furnace needed to be serviced which ran you close to $300.

Still, not so bad, $595 from your $4,800 leaves you up $4,205. But then

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