Deal Analysis Help, Always calculating negative cash flow

[Linden Hausmann]

I've been doing a lot of deal analysis and keep running into negative cash flow unless I cut my purchase price by at least 40%. Is this why everyone talks about needing to find off-market deals to get a price that good? I can't imagine a seller accepting 40% less than he/she is asking for. I am about 2 months into my REI education FYI so not sure if I am doing something wrong in my deal analysis.

[Chris Seveney]

@Linden Hausmann

I wouldn’t worry as much about cash flow as you can make anything cash flow on paper but build wealth is long term hold and appreciation

A $2000/month rent and $1700 p&i will not cash flow after taxes and pm fees etc. If this was in a C area I would not touch it but if it was in an A area which could appreciate then it could be worth looking at.

As they say cash flow pays the bills appreciation builds wealth.