Would you buy a smaller house that will bring a negative cash flow so you could eventually depart with the bad rental?

Not only that, but an all debt deal is just a terrible idea for a first timer as it won’t cash flow with today’s rates and the first unexpected expense slams you into begging mode.Save, save, save.  

So, my monthly cash flow is $200. 

Cash flow on day one!

Are you at $330/mo cash flow in 2 years?

But the buildings we have are good appreciation and good cash flow overall.

Obviously, this is a speculative question and nobody has a crystal ball on this issue, however, I think close consideration of the fundamentals are important in making a decision about this.

Take in consideration that the bigger property will appreciate more in the long run because of the area.

This increases the property's value and can allow you to charge higher rent, improving your cash flow and the property's appraisal value for refinancing.Rent: Lease out the newly acquired and rehabbed properties, preferably to reliable tenants similar to the family you currently have in your townhouse.

I will like to start off with a town house rehab and rent for cash flow.