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Updated 14 days ago,
Rookie question on negative cashflow investment
After hearing to lot of bp episodes on negative cash flow, I have a question.
I am currently living in my primary residence and planning to purchase an investment property, and obviously it is going to be a negative cashflow (bay area), but I am of the opinion that as long as the rent on the investment property is atleast going to be greater than my current primary residence mortgage it can still considered as positive cash flow investment.
The investment property is going to be in a much better location (for office commute, bay area proximity) than my primary residence. I might be totally wrong in my thinking, what am I missing? Is it still not recommended to invest in this negative cash flow property.