Negative Cash Flow VS Equity Accumulation & Tax Benefits ?

[Axel Lafortune]

I'm in a Hot Market with high prices where Cash Flowing properties are rare (Montreal, Canada)

Would you be willing to take a deal with negative cash flow for the first 5 years (2-5K $ per year) if it offers:

• Appreciation potential
• Equity accumulation ( Around 250K over 5 year)
• And tax benefits + deduction (Around 60K / year between operating expenses, loan interest and depreciation) ? 

[Chad U.]

Originally posted by @Axel Lafortune:

I'm in a Hot Market with high prices where Cash Flowing properties are rare (Montreal, Canada)

Would you be willing to take a deal with negative cash flow for the first 5 years (2-5K $ per year) if it offers:

• Appreciation potential
• Equity accumulation ( Around 250K over 5 year)
• And tax benefits + deduction (Around 60K / year between operating expenses, loan interest and depreciation) ? 

Relying on appreciation only is just another form of gambling.  It's like going to the casino and either betting black or red on roulette.  Mind you there were a LOT of lucky gamblers, at least in the GTA over the past decade.