How to make positive cash flow.

[Sejin Kim]

Hello, fellow investors! 

Thank you for all the comments and advice! 

My husband and I are trying to buy our 2nd property in Florida as a vacation home.  While we  are not using it, we plan to rent it. 

Of course, we are going to get a vacation home loan. We were very positive about our plan, however, with the current interest rate being high, and the market is still somewhat competitive, I am not sure if we can have positive cash flow..... 

For us to have positive cash flow, we will need to offer a much lower price than the sellers are asking.. So, now I am not sure, what to do... 

We don't want negative cash flow... So, any advice? I am trying to do brainstorming, but I can't think of any good way to work it out... 

Currently, we live in CA and we visit Orlando a few times..

Thank you. 

[Kevin Sobilo]

@Sejin Kim, I think it depends on how negative the cash-flow is. It sounds like you plan to use it yourself in addition to renting it out so you will get some use from it of value.

Also, the old adage goes "You marry the property, but date the rate" meaning that you can refinance again later to lower your rate and to stretch out payments. So, if you refi in 2 years, you will have paid down some principle, get a lower rate, and stretch out the payments and see your payment go down considerably. PLUS over that time hopefully your rents will go up a little.

So, if the cash-flow is a little negative, it still may be worth thinking about.