4+ Ways to Fix Negative Cash Flow (and When to Sell Instead) (Rookie Reply)

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 7 February 2025

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

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Summary

Does your rental property have negative cash flow? This doesn’t necessarily mean you bought a bad deal, though losing money probably isn’t what you signed up for. But not to worry—in today’s episode, we’ll share a few changes that could get you back in positive territory in no time! Welcome back to another Rookie Reply! Today, we’re answering more questions from the BiggerPockets Forums. First up, we’ll get into house hacking—the easiest way for a new investor to build a real estate portfolio—and show you how to use this strategy to keep buying properties with low money down. Next, should you invest in Columbus, Ohio in 2025? This investing hotspot is drawing plenty of attention, but we’ll show you how to find other markets just like it! Finally, is your Airbnb giving you little or no cash flow? Tune in to learn how to plug the holes in your business, when to hold for appreciation, and when it might be wise to sell! Looking to invest? Need answers? Ask your question here! In This Episode We Cover: The number one thing you must do before looking at Airbnb markets The most crucial data for Airbnb market analysis (and where to find it!) The BEST short-term rental markets to invest in this year Must-have Airbnb amenities to add to your rental property Why we’re choosing secondary markets over primary markets in 2025 And So Much More! Links from the Show Ashley's BiggerPockets Profile Tony's BiggerPockets Profile Join BiggerPockets for FREE Real Estate Rookie Facebook Group Real Estate Rookie YouTube Follow Real Estate Rookie on Instagram Top Investment Housing Markets for 2025 Market Analysis Spreadsheet BrightInvestor NeighborhoodScout Breezeway Sign Up for BiggerPockets Momentum 2025 to Fast-Track Your Investing Journey Get Early Access to BPCON2025 and Learn Real Estate from Industry Experts Ask Your Question for a Future Rookie Reply Grab the Book “Smarter Short-Term Rentals” Find an Investor-Friendly Agent in Your Area Improve Your Real Estate Returns by Optimizing Your Existing Properties When Deals Are Hard to Find (00:00) Intro (00:40) House Hacking 101 (10:58) How to Pick a Market (21:14) Airbnb Listings & Cleaning Fees (31:36) “Fixing” Revenue & Exit Strategies (39:49) Ask Your Question! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-520 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Today, we are going to figure out how to stop your Airbnb from bleeding money.
0:05.3	Now, things don't always go according to plan, but there are tons of ways to optimize pricing,
0:10.0	asset management, and amenities on your property.
0:12.5	So maybe you're spending too much money on operations, or maybe you need to find an exit strategy.
0:17.6	We'll break this down and more next. I'm Ashley Care, and this is the Real Estate Rookie
0:27.4	podcast. And I'm Tony Jay Robinson and welcome to the podcast where every week, three times a
0:32.5	week, we bring you the inspiration, motivation, and stories you need to hear to kickstart your
0:36.9	investing journey.
0:37.7	Okay. So, Tony, what's our first question today? So the first question says, I'm currently
0:42.5	house hacking a property that has an ADU that also generates income. I bought this property
0:48.2	intending to leave and then rent the house out that I currently live in, which is a two-bedroom
0:52.3	one bath. I have a very good interest rate
0:54.7	that I locked in during 2022 that I don't want to lose or maybe have my mortgage call due to not
1:00.1	living here. I live here for very cheap because of the income generated from the ADU. I'm getting
1:04.7	ready to make my next move in 2025 and I'm contemplating on staying here and buying a multifamily
1:09.8	property as an investment out of state,
1:11.9	which would be a lot less capital and have a lot more landlord-friendly laws,
1:16.0	or buy another multifamily property as a primary residence locally and house hack that property.
1:22.5	I'm single and I live alone.
1:24.4	What are the pros and cons of each situation?
1:27.2	Tony, the first thing that comes to mind
1:29.5	is how they mention, I don't want to lose my good interest rate or have my mortgage call due from
	...

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