{"id":181224,"date":"2025-02-24T13:52:26","date_gmt":"2025-02-24T20:52:26","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=181224"},"modified":"2025-02-24T13:53:29","modified_gmt":"2025-02-24T20:53:29","slug":"the-myth-of-cash-flow","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/the-myth-of-cash-flow","title":{"rendered":"The Myth of Cash Flow"},"content":{"rendered":"\n

One dead giveaway that a real estate influencer is <\/span>really<\/span> more of <\/span>a fake guru<\/span><\/a> is an overemphasis on <\/span>cash flow<\/span><\/a>. Sure, it\u2019s not as big a giveaway as having multiple clips of said \u201cinfluencer\u201d partying on the beach in what ostensibly is an educational video on real estate investment. But overemphasizing how <\/span>great<\/span> cash flow is still highly dubious.<\/span><\/p>\n\n\n\n

That, of course, doesn\u2019t mean that cash flow is useless. It is, in fact, <\/span>very important<\/span>, but not for the reasons most gurus would have you believe; namely, after a short while in real estate, you can live a luxurious lifestyle off cash flow alone.<\/span><\/p>\n\n\n\n

Cash flow is mostly <\/span>just<\/span> a way to keep you afloat, but we will get to that shortly.<\/span> For now, let\u2019s talk about the current real estate economy. <\/span><\/p>\n\n\n\n

In today\u2019s market, where prices are still going up, and interest rates are about double what they were five years ago, achieving positive cash flow on an investment house with a loan is extraordinarily difficult. <\/span>The BRRRR method<\/span><\/a>\u2014where you attempt to be all-in on a property for 75% of its value and then refinance <\/span>out<\/span> your entire investment with a bank\u2014is <\/span>all but<\/span> a non-starter.<\/span><\/p>\n\n\n\n

Indeed, the BiggerPockets forums <\/span>are littered<\/span> with discussions about this:<\/span><\/p>\n\n\n\n