Cashflow: BP most MISUNDERSTOOD term

[Kai Van Leuven]

I read too many posts from investors about "cashflow per door" or "that house does not have a positive cashflow", ect. I feel like the prevailing thought is that it is about "cashflow", singular, when real estate investing is about a series of "cashflows", both positive and negative. I will point to a property I purchased;

Purchase Price: 185,000

Downpayment: 46,250 (Negative)

Monthly Cashflow: 200/month for 5 years (Positive)

Refinance: 75,000 (Positive)

Refinance: 115,000 (Positive)

Monthly Cashflow: -75/month for last year (Negative)

I would say the property is cash flowing great! Over the years I have been able to pull out around $150K to buy other properties, along with some MONTHLY cashflow. 

Why focus solely on monthly cashflow? If you do not have appreciation, all the depreciation of the property will eat up the gains when you sell. I would rather invest in something that has a huge payout in 30 years, or 9 for this case study. That is the final cashflow for any asset, when you sell!