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Updated about 3 hours ago on . Most recent reply

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Collin Hays
#3 Short-Term & Vacation Rental Discussions Contributor
  • Property Manager
  • Gatlinburg, TN
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The Myth of Cash Flow

Collin Hays
#3 Short-Term & Vacation Rental Discussions Contributor
  • Property Manager
  • Gatlinburg, TN
Posted

I got a chance to read this over lunch today, and it really hit home some excellent points about investing in real estate.  Thought I would pass it along.

The Myth of Cash Flow

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SMOKY MOUNTAIN FALLS INC.

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Andrew Steffens
#4 Short-Term & Vacation Rental Discussions Contributor
  • Tampa, FL
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Andrew Steffens
#4 Short-Term & Vacation Rental Discussions Contributor
  • Tampa, FL
Replied

I like where most people's expectations are nowadays. Been a while since I had a "lead" call in and say they expect to quit their job off cashflow of 1-3 assets. It was possible from maybe 2020-2022/3 but now it has normalized. It is possible to make a 8-12%+ CoC return while garnering appreciation. You can even double that potentially if you find a value add deal. I do not subscribe to the idea that you should expect negative cashflow UNLESS you want a specific property in a specific market that is more or less a second home situation. I have had some clients happily looking for breakeven or small loss if it meant having what they wanted. However that is more of an emotional investment IMO.

  • Andrew Steffens
  • [email protected]
  • 813-563-0877
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