Negative Cash Flow On LO? Is It Ever Worth It?
Do any of you ever take a negative cash flow on you LO properties? I have the opportunity to pull $20K out of closing on a potential LO property, but would be about $100 negative each month, given the local market. Does anyone do these kinds of deals?
1.) Is it worth going negative for the cash-out opportunity if I need the cash for other profitable projects?
2.) Is it worth going negative to shelter other income I've got?
3.) In general, what are you opinions / experiences about negative cash flow deals?
Thanks!
zoluis,
Cash now is always better, especially if you are lookign for new deals, and dont have a pile of cash or line of credit you are sitting on. Perhaps Steve Miller said it best when he said, "Take the money and run!"
Just don't spend it on an Lexus.
A
zolius,
"Do any of you ever take a negative cash flow on you LO properties? I have the opportunity to pull $20K out of closing on a potential LO property, but would be about $100 negative each month, given the local market. Does anyone do these kinds of deals?"
I DON'T BUY ANYTHING WITH A
negative cash flow .
1.) Is it worth going negative for the cash-out opportunity if I need the cash for other profitable projects?
I DON'T think YOU have to...BeNegative!
2.) Is it worth going negative to shelter other income I've got?
Just because YOU think YOU might be negative...maybe ...YouDon't!
3.) In general, what are you opinions / experiences about negative cash flow deals?
Thanks!
SeeAbove...I DON'T DO NEGATIVE DEALS...
On...L/Os You can get more than (rents)for the going rates...
....as always,
GoodInvesting, Rocky
L/Os are made so that you won't have negative cash flow. You name the price, and you make the deal so that you can have POSITIVE CASH FLOW!! Negative cash flow means NO GO...
Prosperous investing,
td