SFR Flips with no Cash Flow

[Troy Martin]

I'm coming across a lot of houses in my area (Tacoma, WA) that make sense as a flip but there is a tenant in the property for another 6-10 months and at my purchase price it does not cash flow.  The sellers still have debt on the property so seller financing is out of the question.  What strategies does the Bigger Pockets network have to purchase the property now and not lose money for the remainder of the lease period?

[Will Barnard]

The negative cash flow is not the only loss. You must consider loss of opportunity too. Holding a flip for thatblong really decreases your annualized return on investment too so consider that. Cash for keys is your best option and even better, arrange for that cash for keys during escrow and gain possession atvclosing so you have zero downtime. The $250 a month loss for 9 months is only $2,250 butbthe loss tomopportunitybis at least quadruple that so I would be totally comfortable offering them $5k or even more to get out by close of escrow,