What do you do when you analyze a Negative cash flow?
I am new to investing and I am following Brandon's rental cash flow calculator tutorial from bigger pockets.
I've analyzed a property but found it to have a negative cash flow. I remember Brandon saying to play with the numbers and made the deal work before pitching a offer.
Well I tried that and forms my problem is I found my operating expenses are always greater than my rent and therefore it will never make money. Does this mean you should move into the next property or are there things people do to bring this back into a positive cash flow? How would other investors approach a negative cash flow situation? Will playing with the numbers only work if you first have a positive cash flow?
Most Popular Reply
#5 All Forums Contributor
- Plymouth, MI
Walk away...period. On to the next deal until you find one that DOES cash flow positive...without playing with the numbers. Playing with the numbers is another way of saying, you are negotiating against yourself.