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Updated over 13 years ago,
anything wrong w/ RE that's breakeven cashflowing?
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?