Though it's seductive to have
a nice positive cash flow (rental cash on cash return may be as high as 15 - 20 %), property management is risky business — not to mention that you're sitting on a lot of mortgage debt.
Not exact matches
Would I buy a
positive cash flow property in a not so
nice area that appreciates slowly and there is no obvious pride of ownership?
Obviously having a
positive cash flow is important; stay employable in order to keep your income at a
nice level.
As a matter of fact, when you look at the money invested versus the
positive cash flow produced by the property, you are earning a pretty
nice return on investment.
Or if your only going to own a few then you should buy in an area that you can break even on but you have a great chance at
nice move up in values... your mortgage gets paid down by tenant and the value moves up you don't need
positive cash flow in those markets..