Negative cash flow deal - Would you buy it?
My debate is this.
As a general statement the rental property cash flow here in Los Angeles is VERY challenging to find.
I am looking to buy a property with a detached garage and convert into and ADU for helping to offset to mortgage.
Crunching some numbers up on $1M property with and ADU assuming (rough numbers) main house brings $5,000 and the ADU $2,000 I'll still be negative in the deal after all expenses (vacancy, capex, repairs etc…)
However if I will use it as a Sort Term Rental it will be cash flowing beautifully.
What’s your take about buying negative cash flow long term but counting on AirBNB to bring in the positive cash flow?
I appreciate any opinion and advice.