anything wrong w/ RE that's breakeven cashflowing?

[Peter Hans]

Hey :)
so the basic rule for a good REI is most of the time
100% finance w/ a cashflow of 100$ per unit

but what is wrong w/ buyin RE which is breakeven cashflow wise?

simple example:

-no downpayment
-100k credit at 8% ( which would be 666.66$ a month hehe)
- about 1350$ rent

so with the 50% rule we would have a cashflow of about 8$ so basically breakeven

after a couple years the RE will start cashflowing...

well imo the 100$ per unit is good because the investor is on the "save side" just in case if something isn't running you way so you have a buffer

but let's say you are already having a decent cashflow and a good amount of great property wouldn't it be a good idea to add the breakeven property as well to your investments as long as you ain't ONLY investing in breakeven properties?

[Will Barnard]

I would agree with what Jason stated but would have one alternative thought on the subject.
The OG poster stated he could get break-even cash flow with none of his own money (100% financing). His thought process was after 30 years, the home would be owned free and clear, paid for by renters. We all just about agree it is better to have cash flow and the note paydown to free and clear over time, but in a circumstance where the OG poster could get another rental using no money and break even on a monthly basis, I see that as a positive.

Clearly, the choice is cash flow + principle paydown, but if you can get only principle paydown for return using no money, your final return is infinite and the OG posters captial he does have could be used to concentrate on cash flow + pay-down/appreciation.