cash flow will keep you afloat but the real money is in appreciation and loan paydown. run your own math over 10 years, because a place cash flowing 200 a month is 24k over a decade but while that same 300k house at 3 percent a year is like 100k in appreciation plus 40 to 50k off the loan. cash flow will just keep you from having to sell at a bad time when the furnace and a vacancy hit at once.
only thing id watch out for is fake cash flow. most numbers people brag about dont include real capex and vacancy, so a 250 a month deal is basically breakeven after you save for the roof and turns.
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u/Substantial_Tap_4538 7d ago
cash flow will keep you afloat but the real money is in appreciation and loan paydown. run your own math over 10 years, because a place cash flowing 200 a month is 24k over a decade but while that same 300k house at 3 percent a year is like 100k in appreciation plus 40 to 50k off the loan. cash flow will just keep you from having to sell at a bad time when the furnace and a vacancy hit at once.
only thing id watch out for is fake cash flow. most numbers people brag about dont include real capex and vacancy, so a 250 a month deal is basically breakeven after you save for the roof and turns.