The second question every investor should ask, should they find out a property isn’t expected to cash flow, is if there’s no cash flow, where will my returns come from?
You need to know the cash flow numbers that you can expect.
The monthly cash flow is determined by the expenses and the income on a rental property.
Related: 4 Essential Strategies for Taking on a Negative Cash Flow Property But what if the number that shows up is telling you that you can expect a negative monthly cash flow on the property, which specifically means you will be paying out of pocket every month on your investment?
What to Do in Times of Negative Cash Flow The first thing to know is that most properties will yield negative monthly cash flow.
But some of the factors you have to consider are: Time in the real estate market.
We are currently negative $800/month in cash flow, just with the income versus the mortgage payment.
The other part is that it’s in Venice Beach.
Should You Buy a Rental Property with Negative Cash Flow?
Experienced investors—do you buy negative cash flow properties?