Adrian Smude’s 1970 mobile home investment property.
CASH FLOW ISN’T A MOMENT, IT’S A PATTERN
A lot of investors treat cash flow like a snapshot. They run the numbers, get a tenant in place, and move on assuming everything is working. It's not. The number you projected before closing is a best guess. What actually happens over 12 to 24 months is the real number, and those two figures are often very different due to rent estimates, rehab costs, vacancy, and repairs. I see too many people buying on best case scenarios. They take the top end of rent, the low end of rehab, and assume nothing goes sideways. Then when the market shifts, like it has recently,
those properties start losing money and the investor has no idea why because their original numbers "worked." A good market makes everyone look smart. It's when things tighten that you find out what your deals actually are.
I SEE TOO MANY PEOPLE BUYING ON BEST CASE SCENARIOS.
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