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Updated over 15 years ago on . Most recent reply

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95
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31
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Shawn H.
  • Investor
  • Carbondale, IL
31
Votes |
95
Posts

Rental property cash flow

Shawn H.
  • Investor
  • Carbondale, IL
Posted

I have owned 2 duplexes for 4 years. I thought I had done my research...read guru type books. I didn't come across sites like this until a couple years ago. Neither property meets the 2% rule. They have positive cash flow according to the rule, but only about $50 per door. One property has potential issues with trees and I did not consider an exit strategy(duplex will be more difficult to sell). My question is: Do most of you sell properties that may be sub-par, problematic or have lower cash flow than expected? Or do you just deal with the property until the cash flow hopefully increases? ....I am assuming that some of you have made property purchase mistakes.

Most Popular Reply

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5,700
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3,499
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Rich Weese#2 Off Topic Contributor
  • Real Estate Investor
  • the villages, FL
3,499
Votes |
5,700
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Rich Weese#2 Off Topic Contributor
  • Real Estate Investor
  • the villages, FL
Replied

First of all- Some of us don't consider a $50 per door as an automatic failure. I look at other characteristics. If you want to read THREE hundred posts on this , go to post titled "Clash of the Titans- cash flow vs appreciation.". You'll have tons of input to respond to your question.
the other concerns about trees etc are more problematic. Once you buy a mistake, it is hard to rectify it. It sounds like you're going to face a difficult sale eventually, so you just need to decide when to bite the bullet, imo. Yes, we've all bought properties we might have passed on if we had a second chance. Don't let it get you down. Good luck. Rich in FL.

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