Deal Only Works All-Cash

[Jon Fletcher]

I've looked at two deals recently where the price seems fair on the surface. But the current rents are so low, that the deal only works as an all-cash purchase. Taking out a conventional 25-year mortgage, at 75% LTV, assuming 6% interest, results in a negative cash flow!

Have other investors run into this? What are your thoughts? My gut reaction is to walk away, but I'm getting FOMO that I may be missing the bigger picture. I intend to hold my properties for the long-term. 

[Conner Olsen]

@Jon Fletcher Look into renting a property creatively. I furnish my rental and doubled the rental income. Also maybe the current rents are too low and you can increase them. Look for ways to add value to the property. Sometimes the numbers don't work and you need to keep looking.