We see threads all the time about people losing money and how after they add expenses and vacancies, etc. how they go in the negative.

Every company has atleast 1 person who leaves a negative review but what you fail to realize is that this is real estate.

If both houses were sold in 2024 then the loss will negate the profit from my understanding.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

I see that real estate agents and brokers are too negative on sub to deals……investors looking for low interest rates and or low down payments are too positive on the same.As I stated the reality is somewhere in between, depending on individual circumstances.  

To me that is negative cash-flow, because I include hard and soft expenses. 

Any MF of the quality and size (50 up) I would have been interested in would have been cash flow negative for the next 5 years or so, even with 30% down.

@Lourdes Caballero  I agree with you wholeheartedly that negativity does no one any good. 

Saying it wasn't in the lease or @Kevin Sobilo saying it just comes down to one person's word against another would negate virtually every crime.