New to Real Estate · Saginaw, MI · Member since 2021 · 99 posts · 115 votes
Hello BP,
Okay here's the scenario. You have a deal in front of you. It's a base hit deal that cash flows and could turned into a triple but with one small caveat. The only financing available to you, comes with a payment that would make this a slightly negative cash flow deal. So now here's the question. Do you take the deal knowing you will be able to obtain more favorable financing at a certain date in the future? OR Do you pass on the deal until you can obtain more favorable financing from the start?
Negative cash flow is putting yourself in the hole from the start which isn't the goal. I'm slightly confused but would it cash flow well once turned into a triplex? How much capital investment is required for that transition, and what financing are you currently applying to this deal? Seems like there is room for other choices but at the worst, choose another deal.