Investment property positive vs negative cash flow

Investment property positive vs negative cash flow

Member since 2019 · 1 post · 0 votes

Hello All , 

Trying to understand pros and cos of two type of investment 

1. Rental property investment with positive cash flow however in the long run  the property appreciation is not much .

2. Rental Property investment with no / negative cash flow , however in the log run , the property appreciation is much, its even more than what a person should have earned in  as rental income.

Looking forward to hear some more pros and cons to decide. 

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  • Rental Property Investor · Lakewood, OH · Member since 2016 · 69 posts · 50 votes
    7y

    Don’t buy an asset that isn’t currently cash flowing or has potential to cash flow. At least not to get started-there’s some benefits to selling at a loss but cash flow I’d say is king in this market. Playing the appreciation game is a huge gamble, with a lot of unforeseen future moves with rates and segmented markets. 

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