First rental property not cash flowing

[Michael Mackney]

Hey everyone. I've had a duplex for the last 5 months in a C/C+ area. Original numbers and inspection report made it look like on paper that I would be cash flowing after raising rents to market rents but month after month so far, something maintenence wise comes up that leaves me in the red a few hundred a month after I calculate reserves, property management, etc. The market in the area has overall appreciated but I don't know if I can simply rely on appreciation to offset negative cash flow.

Should I sell with the appreciated price and use it as a learning experience before moving into an area that might have less maintenence issues or try and hold on to it?

[Ryan Kelly]

@Michael Mackney 5 months is nothing and not long enough to know if you have a solid asset. The first year is always the thinnest and should get stronger each year. You need a full year of income and expenses to evaluate your property fully AND determine what moves you will make to improve your cash flow in year two. Real estate is a long term game.