Believe me, I have loads of them. signing up to this board has made me realise how little I know! It's made me more nervous than ever.
But anyway . . . here's my question:
What is actually meant by "positive cash flow" and "negative cash flow"? Does postive cash flow mean that once you make loan repayments and pay all other expenses on your IP (rates, agent fees etc etc) that you still end up with money in your pocket?
If yes, how on earth do people manage this - especially starting out with a first IP? Unless you have a heap of money lying around for a big deposit, or get an amazing bargain then charge very high rent - then i don't see how it's possible.
I have been advised ONLY to buy a cash-flow-positive property . . . but I don't see how I could do this for years. I want to get my IP portfolio going now!
Yours in confusion, harriet
But anyway . . . here's my question:
What is actually meant by "positive cash flow" and "negative cash flow"? Does postive cash flow mean that once you make loan repayments and pay all other expenses on your IP (rates, agent fees etc etc) that you still end up with money in your pocket?
If yes, how on earth do people manage this - especially starting out with a first IP? Unless you have a heap of money lying around for a big deposit, or get an amazing bargain then charge very high rent - then i don't see how it's possible.
I have been advised ONLY to buy a cash-flow-positive property . . . but I don't see how I could do this for years. I want to get my IP portfolio going now!
Yours in confusion, harriet