Re: minimum positive cash flow question - Posted by Jay (OR)
Posted by Jay (OR) on August 29, 2003 at 24:41:00:
It really depends on what you feel. Most of these guys say they won’t bother with something unless they get at least $100-250 per MONTH. Well, I purchased a 4plex for $150,000 last year. I was eating about $400 per month NEGATIVE cash flow. Sucks right? Well, here’s the catch. We were living in one of the units. Six months after I bought it, I got an offer for $200,000. But, since real estate prices have gone up so much, I rejected the offer because what am I going to do with $50,000? Spend it? No thanks. There certainly wasnt any better deal on the market, so I decided to stick with the investment. Well, I recently finished a refi, and am now breaking even (appraised at $235,000), AND still living there. Not only that but it’s allowed me to stay in school, and not have a j.o.b… And now, I only have two more terms of school before I can get my degree (to please the parents), and really get started on my investing. Just the thoughts of a 22 year old, so take them for what they’re worth. Hope this helps, Jay (OR).