General Real Estate Investing
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated about 2 years ago,
Trouble Grasping This Concept:
“More valuable homes are likely to cash flow less, if at all, than lower value homes”
I hear this repeated a lot and haven’t yet heard or found the explanation. I assumed that more valuable homes would simply have much higher debt payments and taxes, but then I’ve seen the concept being talked about while referencing cash deals or various other methods of financing, so it seems the debt isn’t the main factor.
So why is it lower value homes generally cash flow greater than higher value homes?