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Updated over 5 years ago on . Most recent reply

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Petelo Johnson Moeai
  • New to Real Estate
  • Alaska
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Is it possible to have cash flow in a class c commercial property

Petelo Johnson Moeai
  • New to Real Estate
  • Alaska
Posted

I'm thinking of purchasing my first commercial property but it is listed as a class c. I've heard it is possible on positive cash flow. Wanted people's input on this

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Will Fraser
  • Real Estate Broker
  • Salt Lake City & Oklahoma City
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Will Fraser
  • Real Estate Broker
  • Salt Lake City & Oklahoma City
Replied

Hi @Petelo Johnson Moeai!  To keep it short and simple:  cash flow and property class are not mutually exclusive.  It is possible do get cashflow with ANY class of property and completely depends on purchase price, financing terms, and operations.

Actually, it is typically more difficult to achieve great cashflow with an A class property than with a C property.

I'd recommend digging into The ABC's of Real Estate Investing to learn how all these pieces fit together and how you can create the results you're after.

Best of luck in the journey!

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