Unique situation - negative cash flow OK?

[Amanda Feack]

Hi All,

I have a unique situation - I bought a house all cash in 2021 in Omaha and rent it long term making all cash flow (minus taxes/insurance).  I also rented my primary residence in Denver and have $800/mo cash flow on it.  I moved to Omaha, and want to get into another long term, single family rental.  With these rates, I will likely be negative cash flow or break even if I am LUCKY on a single family.  I'm 37, and hoping to get into these houses for long term equity gains and eventual cash flow on new purchases.  Should I take the risk and buy a house with a negative cash flow since I have so much liquidity from my other 2 rentals?  If rates drop, the house could cash flow easily.  

Thanks in advance! 

[Bruce Woodruff]

You'll get a lot of opinions on here, going both directions..

Personally, I am ok with zero or little cash flow (but not negative) ONLY IF the asset will certainly appreciate nicely, and within a  period of 2-5 years (just my own rule)

But I don't like the concept of having your other assets cover this one, each asset should stand on it's own.

Just my $0.02....