I’ve been thinking about negative cash flow the last couple of days.
Let’s assume you’re considering buying a rental property and the deal you’re analyzing has negative cash flow.
Wait
First, unless you’re doing a 1031 exchange you don’t NEED to buy the property. As I’ve covered in previous classes, you could keep saving—investing the money you’ve earmarked as a down payment for a rental property in something else while you wait for a deal with better economics.
I’ve even showed in several classes that the time difference waiting is not nearly as much as people may believe.
Find Better Deals
Second, you could keep looking and find better deals.
You don’t have to buy a property that has negative cash flow. You can be patient and wait until you find a better deal with no negative cash flow.
Consider looking in other markets. Consider changing your real estate investing strategy to one with enhanced cash flow.
Construct Better Deals
What if you’ve waited and really put in months of effort into finding better deals and you’re convinced that you’ve found the best deals in your ideal marketplace and are using the best strategy you’d consider, you could utilize Deal Alchemy™ and the 88 strategies we have to improve cash flow.
This could improve your cash flow.
Dealing with Negative Cash Flow
But, today I’d like to point out to major levers in the battle against negative cash flow. One I find obvious—although maybe you don’t and another not-so-obvious one that significantly reduces the risk of investing in properties where you choose to purchase with negative cash flow.
First, the obvious one…
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