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Updated about 4 years ago,
A scenario where negative cashflow might makes sense
I didnt know where exactly to post this but here it goes. I'm considering getting a residential loan on a fixer upper property and moving my family into to live and flip. Plan on putting 5% down and spend a total of $100,000 on a house with an arv of $125000. In this case I will be spending $200 less on my monthly mortgage at my residential home and have more room for my family. We did the same thing at our current property. I'd then rent my current home. The only thing is it may cashflow negative $100. If I hold it for 10 years it may cost me about $12000 BUT my house is starting to rapidly appreciate. Since I've owned it it has gone from $112k where I bought it to $150k in two years. So potentially a $190000 sale price in the end. Thoughts?