Question on numbers . . . . .

[Andy Sabisch]

OK, quick question.  We have found that the calculators on BP are pretty much spot on as long as you put in good data and have used them on several property purchases.

So the question is, if you run the numbers and the analysis shows a negative cash flow, what is the basis for buying that property?  We have looked at properties where the numbers did not show a positive cash flow and there really was not much you could do to raise rents enough to change that result (or lower the purchase price).  However, we have seen the properties sell for asking price (or more) and question why would someone buy a rental that is not flowing positive?

Thanks in advance . . . hope the question makes sense . . . we have shot for positive at Day #1 or seen what it would take to make the numbers positive . . .but when the area or property can't get through the $0/month barrier, not sure why they still sell.