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

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Sep 18, 2024
5:15:34pm

Skeptical Optimist Political Junky

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

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Skeptical Optimist

Previous username: workindev
Bio page: Skeptical Optimist
Joined: Aug 2, 2006
Last login: Sep 19, 2024
Total posts: 82,534 (4,426 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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