Should I buy another property or force cashflow in my duplex?

[Zackary Martin]

I recently purchased my first duplex. I was so eager to get my first property I convinced myself that I just needed to get started regardless of it not cashflowing (terrible mistake). Currently the rent will cover the mortgage but that’s it. I’m coming out of pocket 700$ every month to cover reserves for vacancy, repairs, capex, etc. In order to make this property cashflow I would need to do about $15,000 in repairs to get higher rents and refinance the property at 40% equity ($90,000). I am extremely frugal so the $700 really doesn’t affect my way of living. Should I devote all my money towards making the property cashflow or use the experience gained from my first failure to buy and rehab another duplex that is under market has the ability to force equity and will cashflow? Both would take about the same amount of time and money.

[Jake S.]

Hey @Zackary Martin how confident are you that the rents will be that much higher by sticking just $15k into it? I commend you on taking action but also learning from the actions.

Unless you are positive that it will cash flow after (cash flow well at that) I would get rid of it. Get an asset and sell off the liability