Is REI still worth doing in today's market

Member since 2026 · 6 posts · 0 votes

As I've been looking more into REI people have been bringing up points of little to no cashflow or even losing money, I know part of REI is also the equity you get out of it but if i wanted to pursue a more cashflow strategy is it still worth it?

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Dan NelsonBusiness Member

Real Estate Broker · Chicago and Kansas City · Member since 2016 · 89 posts · 71 votes

16h

Braeden, the people warning you are not wrong about the number they are looking at. They are just looking at one number.

Monthly cashflow on a first rental bought today is often thin. Sometimes close to zero. If cashflow were the whole game, they would be right. But a rental pays you four ways at once: the rent left over each month, the loan balance your tenant pays down, the value over the years, and the tax side. The paydown alone is real money. Your tenant retires part of your loan every single month whether the market moves or not. It works like a 401k employer match, and nobody skips the match because the paycheck feels small.

If you want a cashflow first strategy, the move is not to quit. The move is to shop where rent to price math is stronger and to walk into every deal already knowing your four numbers: real rent, real costs, loan payment, what is left. Run those on twenty listings and you will know whether a market can cash flow, instead of asking the internet.

The hardest thing about buying your first property is not the market. It is getting over your own fear. You are already doing the work most people skip.

[email protected]773-295-1751 Podcast Guest on Show 2 “Slam Dunk” Small Multifamily Deals in 2023 (and Where to Find Them)

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Vaibhav PuranikPro Member
Member since 2025 · 66 posts · 32 votes
4d
There is no doubt that these are difficult times - the seller expectations are still not fully adjusted to the new reality. But there are deals in the market. And think of this - if you find a property that works even in this environment, how great it will be when the environment becomes much better later?
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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
4d
It's tougher all the way around. The days of buying a turnkey property at list price and cash flowing are a diamond in the rough. The way I still see people have cashflow is through negotiations and creating value. You can explore creative ways too.
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Dan NelsonBusiness Member
Real Estate Broker · Chicago and Kansas City · Member since 2016 · 89 posts · 71 votes
16h
Braeden, the people warning you are not wrong about the number they are looking at. They are just looking at one number.
Monthly cashflow on a first rental bought today is often thin. Sometimes close to zero. If cashflow were the whole game, they would be right. But a rental pays you four ways at once: the rent left over each month, the loan balance your tenant pays down, the value over the years, and the tax side. The paydown alone is real money. Your tenant retires part of your loan every single month whether the market moves or not. It works like a 401k employer match, and nobody skips the match because the paycheck feels small.
If you want a cashflow first strategy, the move is not to quit. The move is to shop where rent to price math is stronger and to walk into every deal already knowing your four numbers: real rent, real costs, loan payment, what is left. Run those on twenty listings and you will know whether a market can cash flow, instead of asking the internet.
The hardest thing about buying your first property is not the market. It is getting over your own fear. You are already doing the work most people skip.
[email protected]773-295-1751 Podcast Guest on Show 2 “Slam Dunk” Small Multifamily Deals in 2023 (and Where to Find Them)
Dan Loves Houses4.971 Reviews
Website View Page
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Marc Winter
Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
15h
@Braeden Hoff ,
In every market, at every cycle, there is a deal to be found. The issue I see is there are fewer ripe ones just waiting to be picked. The work is in finding the right deal.
Just keep in mind they are there. Stay calm, focused, and don't let frustration deter you. Real estate is 'the long game.'
2 Reply
Joshua Hardin
Investor · Chattanooga, TN · Member since 2023 · 177 posts · 109 votes
14h
Opportunities exist all around us. We must build the capacity, becoming aware of them so that we may then create the abundance we desire to create.
Success isn't what we've been taught, it's actually much quieter and more boring. That doesn't mean you've failed, it means you're walking aligned.
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Harrison C.
Member since 2017 · 20 posts · 9 votes
13h
Braeden, if cash flow is what you want, look at renting a house by the room instead of to one family.
Thats what I do. My rooms rent for $600 to $775 each, and every person is on their own lease. So a 4 bedroom is four rents on one mortgage. Thats where the cash flow comes from when a normal rental barely breaks even.
Its not free money tho. You furnish it, the utilities stay in your name, and people move in and out a lot more. Its more work than one family on a 12 month lease.
Before you buy, check the city's limit on unrelated people living in one house, and the HOA if there is one. That rule kills it in some places.
And if you can live in one of the rooms yourself on the first one, you can use an owner-occupant loan with a small down payment.
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