Losing Money Knowingly with negative cash flow? Don't be Foolish!

Losing money every month but getting saved by appreciation?  

Justifying your negative cash flow with thoughts like "It's the long-run that truly matters, and I'm making money in the long run." or "It's only a $100/month loss...I can afford it no problem." or "The tax benefits more than make up for the loss."  

Heed the words of Rich Dad:  "Don't be foolish....that doesn't justify knowingly losing money." When I first read these words in 2011, I had 2 negative cash flowing properties in my portfolio, and this story made me defensive. I had done well in the long-run, and mortgage refinances with healthy equity withdrawals seemed to justify the month-to-month losses I was carrying.

But this story in "Cashflow Quadrant" by Robert Kiyosaki planted a seed in me, and I started looking for a real estate strategy that would benefit from appreciation AND positive cash-flow.

After watching about 50 episodes of "Income Property" with Scott McGillivray, I understood the duplex-conversion strategy and bought my first great deal in 2015. Shortly after I realized how powerful the strategy was, I sold my 2 alligators (properties with negative cash flow) and bought another duplex-conversion property.

Investing in real estate is a great move, and if you stick around long enough, you'll do well and won't regret your decision.  But not all real estate investments are created equally, and if you've settled for negative cash flow and are counting on long-term appreciation to make it worth your while...you've quit too early!  Keep searching for an improved investment strategy that will allow you to get BOTH appreciation AND cash flow.  

Perhaps you need to change asset classes, financing strategies, or even the area you're investing in...but don't settle for an alligator in your portfolio!