Buying Real Estate Overseas For Cash Flow (And A Better Life)

8Long-term Rentals—Here's the Single Secret to Success and Maximum Return

A few years ago, on a visit to Paris to check on one of our rental apartments there, we sat down one afternoon with our rental manager, Linda.

“Every one of my apartments is rented,” she told us. “In fact, I need more inventory.”

Yet, at the time, our apartment had been vacant since our tenant of one year had vacated a few months earlier. Three months without cash flow later, we were growing concerned.

“If all of your apartments are rented, and you could fill more if you had them,” we couldn't help but wonder aloud with Linda that afternoon, “why is ours sitting vacant?”

“But you said you wanted long-term rentals only,” Linda replied. “We will find one, I'm certain. It will just take more time.”

“But if we allowed short-term renters?” we asked.

“Oh, I'd have someone in here within two weeks. If you were open to short-term clients, you could have been fully occupied these past three months, just like all my other apartments.”

One of the advantages of real estate investing overseas in general and of rental investments overseas in particular is that, when an asset isn't returning according to expectations, you can adjust the asset. Did you buy a house in a resort region where there's a lot of competition for rentals? Improve your chances of attracting would-be renters' attention by adding a swimming pool. Did you invest in an apartment in a place without zoning restrictions and you're having trouble finding ...