Should I buy Rental Property that does not cash flow?

[Jose Gallegos]

Hello everyone, I am looking to get my first rental property that I will be living in.

The property in question is a 3 unit that is completely redone and very nice. I will not be able to cash flow from two other units but my mortgage payment will be around $400-$500 cheaper than what I am currently paying in rent. Is it safe to calculate that as cash flow?

I just want to take the advice I keep hearing on the podcast that no deal is perfect, but this one just seems like a good place to start for me.

Let me know your thoughts!

Thanks,

[Joseph Firmin]

Hi @Jose Gallegos, I'd run the numbers on it as if I wasn't living there. If you need to move or buy a new property after a year of living there, then you want to make sure the investment still makes sense. If you plan to live there a long time and you are satisfied with any appreciation gains (speculative), and want to view the decrease in rent payments as cash flow, then it is hard to argue with that when coupled with the tax benefits.