Cash flow is a myth? Property does not cash flow till its paid off?

[Mary Jay]

A few years ago one of the investors who had multiple properties in Manhatan Beach CA, then Phoenix AZ, who has been doing it for 30-40 years told me: " A property does not really cash flow till its paid off"

Honestly, I am looking at my properties, and half of my properties cash flow anywhere from 800-1k, but the remaining dont cash flow at all..

Honestly, I cant say that even those that do cash flow 800-1k per month do not really make a big impact because a tenant moves out, I have to clean/fix, etc. The house sits empty for a month or so while I am looking for a new tenant. Then something breaks, etc...I would say that all the cash flow is eaten up by fixes on that or another property...

So the more I think about it, the more I agree with her: A property does not really cash flow till its paid off

What do you guys think?

Does your cash flow on unpaid actually goes into your pocket or mainly goes to fixing that or the other properties?

[Henry Lazerow]

Properties cash flow heavily in year 5+ as rent growth compounds and your mortgage stays the same. You can get some cash flow year 1 but it’s very mild if you’re leveraged up. I have about $40,000 net a year after reserves and everything but have $500k+ of equity in them.

A big factor is also who you have do repairs. I have cheap guys who do it 1/2 to 1/3 what you pay if call someone off Yelp. This is essential to running these profitably.