Charisma Property Management Solutions

Investment Plan Rental Property Investments

If starting out, you want to find property where you will break even or possibly earn positive cash flow, meaning that the rent you will receive will exceed the mortgage payment, taxes and insurance.

This way, owning the investment property will not be a current burden on your budget, as it "pays for itself" or even makes you a little money each month.

To consider Rental Property Investments, the term ‘working capital’ has to be understood.

There are two concepts of working capital: •

• Gross working capital is the total of all current assets.
• Net working capital is the difference between current assets and current liabilities.

It may be mentioned here that though this concept of working capital is commonly used, it has no economic meaning. It makes little sense to say that a firm manages its net working capital. What a firm really does is to take decisions with respect to various current assets and current liabilities.

Working capital is a significant facet of rental property investments because investment in current assets represents a substantial portion of total investment. Moreover, investment in current assets and the level of current liabilities have to be geared quickly to changes in sales. To be sure, fixed asset investment and long-term financing are also responsive to variation in sales. However, this relationship is not as close and direct as it is in the case of working capital components. In the management of working capital two characteristics of current assets must be borne in mind. Firstly, short life span and secondly, swift transformation into other asset forms. Current assets have a short life span. The life span of current assets depends upon the time required in the activities of procurement, production, sales and the degree of synchronization among them.

We help you to return your investment. To avoid possible problems have your property managed by Daphanna “The Complete Professional Management Services”. We can handle all dealings with tenants, from finding and screening tenants to collecting rent to maintenance, etc.

Daphanna are internationally based making it especially useful if the rental property is not in your area or even the same country making it more difficult to manage.

Investors needed

We have guaranteed investments from 10€ per month with 100% return after 5 year.

Contact us now for your registration pack

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