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Updated about 17 years ago on . Most recent reply

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42
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Kenneth Lim
  • Real Estate Investor
  • San Jose, CA
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42
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Kenneth Lim
  • Real Estate Investor
  • San Jose, CA
Posted

Should we factor in a conservative interest rate as there are fixed and floating interest rates. My question is if interest rates range from 4 - 8%, we should be take 8% into consideration because let's say 8% is during very bad times and 4% is in very good times. The 4% and 8% are just example figures.

So if 8% (Bad Times), we are still getting a positive cashflow, let alone the good times right?

Whereas if we factor in the good times ONLY where we are getting positive cashflow, maybe when it comes to the bad times, we will be getting a negative cashflow.

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