Negative Cashflow but high amount of equity
I'm under contract on a house that I plan to live in for the next year. Its needs small repairs but will have instant equity when I buy it.
The biggest downfall to the house is that the home is small (1/1). That being said there's a very large detached garage with a office on top of the garage. Also the lot has a shipping container for storage, lot is about 1 acre in commercial zoning. It is perfect for me because I need a place to run a business out of.
Long term when I move out In a year I will rent out the house. It will have $0 in monthly cashflow after expenses. Although that sounds bad, it gives me a free place to operate my business out of. It always had a solid rental history as well.
my question is would you brrr a property and have a negative cashflow, if you find a deal that has high amount of cashflow? Ex: say I refied and now it cashflows -$400 but used the refi for a property that cashflows $1200. For a total of $800.