You are basically gambling that rents will go up. Unless you are getting a

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Sep 18, 2024
3:55:39pm

VenturaCoug Playmaker

You are basically gambling that rents will go up. Unless you are getting a

Screaming deal (I.e., walking in with equity) I wouldn’t do it. Non-cash-flowing real estate is not fun, even if you’ve got the cash flow from the other to offset it.

Obviously, if values and rents skyrocket we’ll all wish we had leveraged ourselves to the hilt and bought non-cash-flowing real estate.

This message has been modified

Originally posted on Sep 18, 2024 at 3:55:39pm

Message modified by VenturaCoug on Sep 18, 2024 at 3:56:47pm

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VenturaCoug

Bio page: VenturaCoug
Joined: Oct 1, 2014
Last login: Sep 19, 2024
Total posts: 1,311 (1 FO)

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Messages

Author

Time

Should we buy? We have a town home that we rent to BYU students near Brick Oven.

Undefeated

Sep 18, 3:46pm

You had me until your last line, unless I’m misunderstanding you

Warner

Sep 18, 3:49pm

If you can’t cashflow it I wouldn’t do it, but that’s just me.

NorCal_Coug

Sep 18, 3:49pm

Buy an investment and lose $600 per month right away? No dude, not good.

cougar95

Sep 18, 3:51pm

Because you are only looking at one part of the investment. If it continues to appreciate in value, which is has been,

Sep 18, 3:55pm

but if they hold it "till they die" they won't ever realize that benefit.

Cougarclaw

Sep 18, 4:08pm

the OP's heirs get the benefit though... the same way the heirs would benefit if the OP bought stocks today.

HarlemCoug

Sep 18, 4:31pm

Theoretically it would be paid off before they die.

Sep 18, 9:01pm

Only if the Brick Oven is part of the sale.....

WJCougar

Sep 18, 3:52pm

Based on your hope to hold until you die, I wouldn’t buy anything that doesn’t

ChiCityCoug

Sep 18, 3:55pm

You are basically gambling that rents will go up. Unless you are getting a

VenturaCoug

Sep 18, 3:55pm

Agree negative cash flow is soul sucking. Appreciation may work out that it

johnnybyu

Sep 18, 4:05pm

rents arent going up. Already heading down

chismoso

Sep 18, 5:17pm

Can you make any improvements to it where you can raise rents to cover that $600 or at least come close?

Sep 18, 3:57pm

Are rents still going up in the area? How long until Cash flow positive? If rates drop to 5% next year is it positive?

Baron

Sep 18, 4:00pm

As a property owner myself, you'll get nailed with much more than the mortgage

cougarblue

Sep 18, 4:07pm

great point. the $600 loss will be minimum.

Cougarclaw

Sep 18, 4:08pm

You were paying $1,600,000 per month on a mortgage. That must have been some rental.

WDaddy

Sep 18, 4:10pm

Fixed. Nice catch.

cougarblue

Sep 18, 4:11pm

Seems typical of the value of properties owned by CB denizens.

Emmett Fitz-Hume

Sep 18, 4:56pm

When do you predict you’ll achieve positive net cash flow?

Tare

Sep 18, 4:17pm

The top is in when you see people getting investment advice from quora threads

rad dawg

Sep 18, 4:18pm

lol...why in the world? there are rental properties that cash flow. why would

volleyjiver

Sep 18, 4:19pm

Agree in bad investment, where are you seeing 10-15% cash flow right now. If an

johnnybyu

Sep 18, 4:23pm

where are you buying properties that cash flow at that rate? Good tenants?

bdizzle

Sep 18, 4:24pm

They're not in the West. Middle america with a good property manager and good

volleyjiver

Sep 18, 4:38pm

In past Midwest has had projected good numbers but with bad tenant risks and

johnnybyu

Sep 18, 4:51pm

Only if you plan to tear down the wall between a and make a super townhome.

Longseason

Sep 18, 4:21pm

Winter Quarters? I lived there the year after my mission.

russkiejedi

Sep 18, 4:22pm

No for me, too 'spensive and uncertain market

Sep 18, 5:02pm

Took my daughter to gymnastics, then came back and got my son, took him to

Undefeated

Sep 18, 5:02pm

I wouldn’t buy a negative cash flow investment right now

Skeptical Optimist

Sep 18, 5:15pm

Out west that’s the only thing there is if you’re only putting down 25% or less.

RdF3

Sep 18, 5:36pm

There is a very high probability that the place will lose over 100k in value

chismoso

Sep 18, 5:16pm

No way.

yapacoug

Sep 18, 9:28pm

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