Updated over 6 years ago on . Most recent reply
Would you negatively cashflow on a SFR?
Hey BP Nation!
if you could rent out your primary residence, but would negatively cashflow approx $200/mo to do so, would you do it? Is there ever a point where the cashflow loss "makes sense" for you? Specifically, I bought my home 18 months ago with 101% financing. I am in this home for less than $2500 total. I have the opportunity to rent it out for about my PITI payment, but after all said and done I would be about -$200/mo cashflow. The upside is knowing I can confidently pay the difference with my income and move on and purchase another home to live in. This next home would likely be a roommate situation where I can cover the payment as well, or a duplex with a similar outcome. I am considering if the $200 monthly loss is worth it to take a new opportunity.
So, what are your thoughts? In my position, would you allow yourself to negatively cashflow to take on new opportunities?
Most Popular Reply
#5 All Forums Contributor
- Plymouth, MI
No, never...ever.
Would you work for free?