What Is The Snowball Effect And How Will It Help You With Owning San Diego Rental Property?

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By Goldenwest Management

So you’re thinking about getting started with San Diego Rental Property. That’s awesome news but, before you start investing in a San Diego Rental it’s important for you to take a step back and consider the importance of the snowball effect and how it can help you as a Real Estate Investor.

What Is The Snowball Effect?

The snowball effect basically follows the Warren Buffet investment strategy of the “snowball” or buying and holding onto an investment over the years so you can accumulate cash flow.

This investment strategy works well in Real Estate since you can easily have your rental properties pay for themselves over the years if you buy, hold and use the cash flow from your existing rental properties to buy more rental properties.

Snowball Effect in Action

For example:  Let’s say that you’ve bought two rental properties and after expenses both rental properties are generating you about $500 per month each, or an extra $12,000 each year.

If you save the profit from your San Diego rental properties you would be able to buy another rental in about two years and if you continue following this strategy over time it’s possible to pay all cash for your rental properties in the future.

Think Long Term

As a Real Estate investor it’s best to think long term and realize that if you can buy and hold onto your properties for the next 10, 15 or even 20 years rather than using that income now, it’s possible to buy one property per year moving forward and to own an awesome portfolio of San Diego Rental Properties.

San Diego Rental Property Management

As you build your portfolio of San Diego Rental Property let Goldenwest Management be your property management partner who will save you time and money while you enjoy the rewards of owning rental property.

To learn more about how our San Diego Property Management service can help you grow your rental property portfolio call us today at (858) 792-3442 or click here to connect with us online.