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Updated about 12 hours ago on . Most recent reply
#4 Short-Term & Vacation Rental Discussions Contributor
- Property Manager
- Gatlinburg, TN
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The Myth of Cash Flow
#4 Short-Term & Vacation Rental Discussions Contributor
- Property Manager
- Gatlinburg, TN
I got a chance to read this over lunch today, and it really hit home some excellent points about investing in real estate. Thought I would pass it along.
- Collin Hays
- [email protected]
- 806-672-7102
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#2 Short-Term & Vacation Rental Discussions Contributor
- Olympia, WA
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#2 Short-Term & Vacation Rental Discussions Contributor
- Olympia, WA
Quote from @Collin Hays:
Quote from @Michael Baum:
I read it, but I did have some disagreements. I don't like anything that loses money every month expecting/hoping that I will make it up with appreciation.
I don't know that it is "losing money". A 401K isn't producing any monthly cashflow, yet we dutifully dump $1,000 a month in it for 30 years, hoping there is a pot at the end of the rainbow. Never think twice about it.
If we are making some or all of a mortgage payment for a few years on a vacation rental, it's only the interest that is lost - the rest is paying off the asset, all while the asset continues to go up in value through the years.