Can you find a REI opportunity that
produces enough cash flow to pay for your new truck?
The lender wants to see a rental property
produces enough cash flow to pay all operating expenses and the financing payments, or that the project has a clear exit strategy to cover all expenses and then some.
Not exact matches
The
cash flow should be large
enough to pay the expenses of the income
producing property (mortgage payment, maintenance, utilities, etc...).
With that small a withdrawal rate you'd need a massive nest egg to
produce a trickle of
cash flow, and most people will simply never save
enough to make that feasible.
We exploit this weakness by focusing on quality: businesses that generate high and consistent ROIC / ROE, are run by skilled capital allocators, and
produce enough free
cash flow to self - fund growth without excessive leverage or dilution.
Buying high yields is not
enough, those yields be realizable from companies that can
produce cash flows to support the price of the bonds.
-- Will this be a part - time activity until the portfolio
produces enough cash -
flow to do it full - time?