I still own several rentals which are upside down--I failed to predict the real estate crash, but even though they are upside down they are still slightly cash flow positive and they are less upside down then they were 3 years ago.

It is a win win  as for me I am able to sit in my chair and watch football and my seller gets exposure for their home while the agent is hoping to sell my listing and pick up potential clientsBack to the question, 25 years ago that is how I got my start was holding open houses at other agents listings to procure clients. 

At least from my perspective, (fixed-rate) mortgages are pretty predictable in terms of cash flow, so it's not hard to do the math assuming none and then subtract out mortgage payments later if applicable.4.

having partaken in my share of this strategy.. difference was I was the HML putting the investor into title.. we just call it rate term refi... that model died a humungous death in oct of 2008... to only be revived about 2 years ago. and now you have lenders putting 75 to 80% debt on low value rentals all over again.and I predict in 3 to 5 years there will be another wave of foreclosures as burnt out landlord symptoms take root... what was really great for the industry and economy was the 2008 to 2012  were so much was being bought for cash... if folks start ripping cash out again.. you now take a asset that could never be foreclosed on and now it can be.. so law of averages.

Also the steadiness makes it easier to  predict.  

. :)PS: Do not take the title of this post to mean that past performance predicts future performance.

After all predictable monthly expenses are accounted for there would be a net cash flow of around $140/month (LPMI mortgage, HOA, etc etc = roughly $1,660/month) if the unit was rented on Day 1 at the average current rental rate.  

But now lm confused as to the predictions of a market correction.

Hello All,I am a new REI in the Houston area and I closed on my first property on June 26th. The sellers leased it back until August 8th and therefore I've had it for 2.5 weeks.  My initial post giving the figures and...

You can't exactly predict future repairs or vacancies.