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Cashflow Forum
A place to discuss Cash Flow Board Game & Investing
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von76
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 Posted: Sun Feb 04, 2007 4:22 am Post subject: Investment property with minus cash flow? |
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I have found 2 property cards in the small deal pack that have a minus cash flow amount, which doesn't make sense as you would think it would be rent money?
If this card has not been misprinted, then how does buying this property give me financial gain? Also the rules state that I am mean't to enter this figure in the income column, but since this is a negative cashflow, then you would assume that this goes into the expense column, but the rules do not state this.
Can someone please help with some feedback or an explanation?!?! |
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admin
Site Admin
Joined: 20 Nov 2006
Posts: 36
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| Posted: Mon Feb 05, 2007 5:12 am Post subject: |
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I normally avoid buying the property with negative cashflow. It is definately possible to have a negative cashflow property, where rental yields do not cover the cost of owning the property...eg mortgage, rates, tax etc...but we all know most financial gain is made from property value appreciation, not so much rental yields.
Yes you are right, negative cash flow would be reflected in the expenses column.
Cheers
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