First Time Poster

[Gary Hirthler]

Hello,

First time poster starting rental property investing journey feeling stuck:

*I love all the numbers posted in Rental Property Investing (Turner), and I'm not seeing how they would work now with the interest rates. 

1. How are folks investing in rental properties right now if they don't have all the cash down?

2. If the rent doesn't cover all of the expenses (no or negative cash flow)[, is it ok to put some of the money I am already saving each month toward covering some of the mortage (hopefully not) and expenses that tenant rent isn't covering? With the thought that once rates drop I can re-finance to get mortgage payments lower.

[Bradley Buxton]

I agree with Bob there is a risk hoping to cash flow in the future. Here in Reno it's an appreciation market where you are gaining more equity in the home than cash flow. This means if you sell the property in 1 year after buying then you lose per month but get it back after the sale. A buy and hold or flip type situation.  IF you are living in the house and renting a room or part of the property to cover the cost and it doesn't cover all the costs the negative cash flow is actually just your portion of the payment.  At our brokerage we work with almost exclusively with investors and we are seeing some buying properties that do not cash flow.  It is not ordinary but there may be creative tax situations where having a property (business) that loses money would be beneficial in other ways.