Buying an asset that you expect to turn cashflow positive in the short term is what real estate investment is about.
So I buy a property, making a cashflow loss on it. As the value increases I keep refinancing and cashflow keeps going down (though offset partially by rent). I keep doing this for 20 years and build a big portfolio of properties, which by the end of year 20 will have zero cashflow but a BOATLOAD of equity. I sell enough to pay off all the existing loans, resulting in a smaller portfolio that produces a nice chunk of cash. This is after 20 years.
If this isn’t real estate investment……. Not that I would care what people call it. I'll be happily doing whatever I want to do.
Alex
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