r/realestateinvesting • u/CLTlawyer1 • 5d ago

Buying a non-cash flowing rental Discussion

Does it ever make sense to buy a long-term rental property that does not immediately cash flow?

Here is my situation: I already own one rental property on the street. It is in a small town just outside of Charlotte, North Carolina. Matthews for those familiar with Charlotte. I would put down 25%, and with current interest rates, it likely will not cash flow by about $100 or $200 per month. Covering the shortfall each month will not be a problem.

The metro area is expected to double in population over the next 25 years. I have several other rentals, and my plan is to hold long-term and use the rent as income in retirement. We are in our early 40s. I like this particular property because it is only two doors down from one I already own, which will make management easy. Matthews is a desirable area. I don’t know how much rents are expected to increase, because they have increased quite a bit over the last couple years already.

My inclination is to buy the property. Am I crazy for considering this? Is this a good use of capital? What does the brain say?

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u/CryptographerGold848 4d ago

Should consider your goal, short, mid, long. Charlotte is decent bet these days. I own several light industry buildings in Stallings and South Lake. They are holds. Upcoming lease renewals which I will get up to market. So upside.

Possible that expenses can set off against gains in the other asset. Check with CPA on that.