Quote:
Originally Posted by james_clickmemedia
own some single family homes & apartments. None of them produce positive cash flow however they break even & in under 10 years will all be paid for.
The apartments are in UK and have gone up in value over 200% in last 10 years. THe single family homes are in Texas and have not gone up at all in last 10 years. That's the trouble with living in a state with lots of land the house prices stay stable. Good & bad I guess.
I use a management company that gets 10% so don't have any aggravation.
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When you buy rental property you have to be willing to put some time in, do your homework, and get into them at the right price. If you're not cash flowing, you didn't do this. It does sound like they would be if you weren't using a mgmt co, though.
When you're only breaking even, what about the vacancy rate? Is that including in "breaking even"? What if a couple of units go vacant for several weeks or even a few months?? What do you do when one needs new plumbing, throughout? Etc ..
I understand that you're more interested in long term appreciation and building long term wealth and probably enjoying some tax benefits... but everything should always cash flow.