Determining Cash Flow

[Jacquelyn Swint]

I am a real estate wholesaler. If I am correct, investors/buyers are concerned with equity and/or cash flow. If a property does not have that much or any equity, can it still be a good investment if it cash flows?

How do you calculate whether or not a residential property cash flows?

[Steve L.]

Jacquelyn -

As a wholesaler I think you are making a big mistake if you are looking at just cash-flow.

If there is no equity that means someone can buy the same thing on the open market for the same price and you essentially are bringing no value to the table as a wholesaler.

So cash-flow is important to everyone but you aren't going to get paid unless there is at least some equity too.