All Topics / Legal & Accounting / Rule of thumb: -ve to +ve cashflow property

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  • Profile photo of ralwig88ralwig88
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    @ralwig88
    Join Date: 2003
    Post Count: 4

    Hi

    I was wondering if anyone has a rule of thumb or noted from experience how long it takes for a property to go from negative to positive cashflow?

    If you assume the rental is 1/100 of the purchase cost on a weekly basis (eg. $300/wk rental on a $300,000 house and land) and interest is about 8%.

    Would the doubling cycle of 7-10 years be an appropriate time to take for it to become cashflow positive (allowing also that rents don’t often keep up with capital growth).

    Thanks

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