Cash Flow vs. 10 Year Outlook, Pennies vs Dollars

[Juan Pastrana]

First Post! I've been trying to buy a home/deal in the Dallas area for the past 1.5 months. From analysis it has been difficult to be competitive in my offer because I'm going lower than others after accounting for the estimated rehab costs and having a projected monthly total cost that will cash flow $200-$400/month. Speaking to lenders and flippers I know they have pointed out how long it would take to make the $50-75k in equity/refinance cash out on $200-400/month (pennies vs dollars). Though I totally agree, my concern is if a property isn't cash flowing then how can I build any reserves and cover myself for the capex that will happen down the line.

My thoughts are to expand my intentions, eventually balance my portfolio with properties that bring to the deal an awesome ARV/equity opportunity, properties that can be converted from single family to multi family and gain cash flow, and mult family properties that are intended to cash flow. It's also scary, won't lie, but wanted to get the thoughts of the BP forum. Lastly, so far I've been outbid/missed out on 4 properties.