If a property
runs cash flow negative, you may be able to claim a deduction on your tax return that leads to a tax refund.
Incorporating a carbon price of $ US10 / tCO2 to reflect the introduction of a national ETS in 2017 and a 15 % reduction in coal power tariffs from ongoing power market reforms, the gross profitability of the operating fleet halves by 2020, with 27 GW
becoming cash flow negative and 140 GW making a gross profit of US$ 5 per MWh or less.
If your property is running
cash flow negative by $ 2,000 after - tax annually but you're paying down your mortgage principal by $ 4,000 annually in the process, that's an important consideration.
Beverage volumes have doubled since 2004, but the business is
still cash flow negative and is expected to report a loss this year, compared with a profit of more than $ 105 million in 2012.
In other words, if you have $ 48,000 in equity in the property and you're
cash flow negative $ 2,000, you've made a $ 50,000 investment to earn $ 4,000.
Despite efficiency improvements, the shale industry is expected to be
cash flow negative by a combined $ 20 billion this year as oil prices sink.
A property that
runs cash flow negative can still be a good investment though, so I think you need to consider why the rent won't cover the costs.
Initially when MYRX announced its (friendly) acquisition bid for JAV on Dec. 18, 2009, I, and I believe most other post-spin investors, was extremely annoyed; here was
a cash flow negative biopharma company buying another cash flow negative biopharma company with nary a significant revenue stream between them.
In hindsight I was not patient enough, and this entry point proved too high; ADSs have since traded down further as operations have continued to show mediocre results and more recently have become
cash flow negative.
The problem was that ASCMA was
cash flow negative.
This prevents me from having a cash flow positive turn into
a cash flow negative if I have to turn to a property manager.
I am amazed at the numbers of deals right now that are
cash flow negative that get sold on bad advice.
Buying a rental in Toronto likely will be
cash flow negative.
I've seen so many properties listed that would be «Great rental opportunities for an investor» that actually would be
cash flow negative!
As Jacqueline stated Prop A is
cash flow negative and to me that is a non starter.