Rental Property Investing when they dont cashflow

[Pascual Torres]

Hi, Im trying to invest in rental properties but the prices in my local area are so high that everything I look at doesnt cash flow (with traditional financing). Everything is flying off the shelves. I mean everything. Offering over asking price is the norm and necessary if you want to get the property. Buying for appreciation seems what people are doing but from what I read, that is not good strategy.

Should I stop trying to look for cash flowing properties and buy negative cash flowing properties just for the appreciation and loan paydown?

What strategies have you experienced investors deployed in such climate?

[Nathan Gesner]

Quote from @Pascual Torres:

Hi, Im trying to invest in rental properties but the prices in my local area are so high that everything I look at doesnt cash flow (with traditional financing). Everything is flying off the shelves. I mean everything. Offering over asking price is the norm and necessary if you want to get the property. Buying for appreciation seems what people are doing but from what I read, that is not good strategy.

Should I stop trying to look for cash flowing properties and buy negative cash flowing properties just for the appreciation and loan paydown?

What strategies have you experienced investors deployed in such climate?

I think you already know the answer. We're in a peak market with prices that are unhinged from reality. It didn't make sense to buy properties with negative cash flow six years ago, two year ago, or last week.

Stick to the principles and exercise some patience. It may be a year - or even two - before we return to some sense of normalcy. Don't get caught up in the frenzy and make a mistake that may negatively impact the rest of your life.