The Negative Cash Flow Club!!

[Amy Raye Rogers]

The numbers are in for 2021... 

6 doors acquired in 2021... 8 total doors owned (all SFR)

54k in rents, 24k expenses, 30k cap ex, and 30,500k in PITI...

For a grand total of -31k net cash flow!!!

but...

400k equity growth! I'd call that a win.

Know what you're getting into folks!! It's a long term game for buy & holders.

Cheers!!

[J Scott]

Nothing wrong with cash flow negative, as long as you understand what you're getting into and have the reserves to cover the loss. 

That said, a lot of people go into negative cash flow without understanding the risks.  I know a lot of investors who were using this method to scale back in 2004-2007, and they learned the hard way that markets don't always go up.  Many of them were over-leveraged, under-capitalized, and weren't prepared for a spike in vacancies and bad debt.

It all boils down to your ability to absorb risk, and only you know what that looks like.