First Property Operating at Loss

[Sean Davis]

Hello, 

I am looking at becoming a first time real estate investor in the Chicago land area. I looking at getting an FHA loan to finance my first property. I was wondering if it is normal for first time investors to operate at a small loss on an investment property? My real estate agent said it's normal, but want to get a couple second opinions.

Thanks,

Sean

[Greg Scott]

Sean:

In a general sense, I would say that is a lie.  In a more specific sense, I would say "it depends".  

If you have told the realtor you only want high-end property that someone else will manage, and you just want something turnkey, yeah, that is probably right.  If you are willing to look long and hard or expand markets and price ranges, you can find a cash-flowing property.  In fact, you can find them in most places in the U.S. if you are flexible and willing to work for it.

Good luck.