What To Do With Negative Cash Flowing Properties?

Look we're generally optimistic about the future but we believe you have to plan for the bad times too. And we've had a very long run of QE, low-interest rates, and easy money so if you're carrying any negative cash flowing properties this week's Rock Star Minute may be of interest...


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0 comments on “What To Do With Negative Cash Flowing Properties?”

  1. Good advice, appreciation does not pay the bills. Some people think it does but you are not holding a stock that has no overhead, you are the owner of something that takes work and $$$$ to protect the value of. I recently met with a banker who had never been a land lord. I laid out a business plan saying I planned for $300 a month in maintenance expenses beyond any fixed expenses like financing. He said that was a lot. I said that is nothing, you piss away $300 in a flash. You start replacing a roof, windows, furnaces and if your not replacing an appliance your maintenance budget for the entire year just got blown away on a $5000 furnace. Plan to make nothing on your property after you pay everything and 1% in maintenance.

  2. If I may. So. by positive cash flow, it of course on a black and white ledger, means rent in, insurance, condo fees (if appl) mortgage/int, reno's and upkeep out (utilities - depending on lease agreement), leaving an understanding of the accounting and what can get written down and tax time (with a separate account, and income/outflow trail during a year, then what I assume is a tax refund, to add to inflow, for the overall Cash Flow calculation? (Only to be pulled out of a personal income tax filing, and interpretated to one property, or more trickier, many).

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