Breakeven Cash Flow Investing

[Ryan Overcash]

Raleigh friends! Do you ever consider buying a property knowing it might be at best breakeven cash flow for the foreseeable future but have a strong likelihood of good appreciation given our market? I try to tell my investor clients that is the situation in the Triangle, and it's extremely unlikely they'll find deals ON MARKET. Personally, I think I'm going to have to go to the extreme outskirts of the Triangle for cash flow or explore opportunities in the Triad, SW NC, Southern Pines, Greenville, etc. Let me know what y'all think!

[Cory J Thornton]

@Ryan Overcash - Everyone buys real estate for different reasons. Each of us are unique as individuals with different priorities, different risk tolerances, different bank balances, different partners, different time horizons, ... 

Personally I do not touch anything without positive cashflow on day one. If I have to trade geography for cashflow, then I understand I am giving up the first three rules of real estate (location, location, location) to make that trade. 

I have clients who want real estate for depreciation, they don't mind a break even investment, and are looking at appreciation in a 10-15 year timeline. 

You are 100% correct that cashflow with a Raleigh or Durham address is nearly impossible to find. Cashflow can be found within a 45 minute commute. 

Great conversation starter! Since we are both in the same market thinking about the same things, I would love to grab a coffee sometime and connect. 

Happy Thanksgiving!