Higher cash flow but more repairs vs no repairs low CF

Higher cash flow but more repairs vs no repairs low CF

Rental Property Investor · Member since 2018 · 14 posts · 2 votes
What seems to be better deal a high cash flow of $670 in C class area with some minor repairs, possible major repairs in 5 years. like roof, maybe foundation issues. Duplex was built in 1900. Ne t option is lower cash flow of $300 in B class area that needs no repairs, minor or major. Duplex built in 1987. Both properties have tenants. The B class area duplex is higher price than Duplex in C class area.
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  • Investor · NJ · Member since 2018 · 869 posts · 921 votes
    7y

    Both properties will eventually need some sort of work whether it is now or a couple years from now. I'd personally go with the higher cash flow unless the costs of repairs were just as much as the other property costs then it might work out better to get the lower cashflow.

  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    7y

    B

  • Rental Property Investor · Member since 2018 · 14 posts · 2 votes
    7y

    @ Joe, what makes you say B class area with lower cash flow than higher cash flow in C class area?

  • Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    7y

    B

    peace of mind, less time, less active management

  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    7y

    In the long run, the B property will serve you much better. 

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