Is it ok to Sacrifice Cashflow?

[Jeremy Corporan]

Hello BP community. I’m looking to purchase my first multi family home. However it’s been a challenge looking to find properties that cash flow beautifully in my part of town. My question is when is it okay to sacrifice some cash flow? I know what’s recommended is $100 per door. Is there any exception to that. Say if your looking in a town that has an Excellent school system, not a big town 15k people with good transportation. I would love any feedback I receive thanks again!

[Greg Dickerson]

You should always make sure the deal has positive cashflow and a cushion so you can weather a down turn. Never compromise on cash flow and don’t bank on appreciation. That’s how you get hurt in a downturn.