907: Seeing Greene: $100K In Equity But NO Cash Flow, Should I Sell?

BiggerPockets Real Estate Podcast

BiggerPockets

Investing, Education, Business

4.8 • 16.6K Ratings

🗓️ 5 March 2024

⏱️ 42 minutes

🔗️ Recording | iTunes | RSS

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Summary

Where’d all the cash flow go? More than ever, rental property owners are waking up to find less and less mailbox money coming in every month. This is doubly true for those who used low down payments to house hack and turned their properties into full-on rentals. So, what do you do if you have a rental property giving you low, no, or negative cash flow? Should you sell it and swap it for another investment or ride it out, betting on future appreciation gains? We’re giving our thoughts in this Seeing Greene! As always, David and Rob are here to answer your pressing real estate investing questions. But resident yacht tycoon James Dainard also brings his twenty years of investing experience to the show to help this week’s rookie real estate investors. First, our very own Noah Bacon asks what he should do with a negative cash-flowing house hack that has six figures in tax-free equity. Then, we ask a question everyone wants an answer to, “WTF is wrong with investors these days?” If you want to turn your house into a rental property, stick around because two more investors ask whether it’s worth it AND when you can start writing off those lucrative real estate tax deductions. Want to ask David a question? If so, submit your question here so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can jump on a live Q&A and get your question answered on the spot! In This Episode We Cover: Whether to keep or sell a rental property that’s losing money every month Appreciation vs. cash flow and why SO many new investors get this wrong How to minimize your chance of negative cash flow by buying in THESE areas Why some real estate markets appreciate while others rarely see price growth Whether you should turn your primary into a rental property or buy an investment property instead Real estate tax deductions and how long you have to wait to write them off And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch Join BiggerPockets for FREE Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area Expand Your Investing Knowledge With the BiggerPockets Books Be a Guest on the BiggerPockets Podcast David's BiggerPockets Profile David's Instagram Rob's BiggerPockets Profile Rob's Instagram Rob's TikTok Rob's X/Twitter Rob's YouTube BiggerPockets' Instagram James' BiggerPockets Profile James' Instagram Hear James On The “On the Market” Podcast Ask David Your Real Estate Investing Question Landlord Tax Loopholes That’ll Help You Pay ZERO Taxes w/Matt Bontrager WTF is wrong with investors these days? Connect with Noah: Noah's BiggerPockets Profile Noah's Instagram: @makinbaconrei Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-907 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is the BiggerPockets Podcast Show 907.
0:05.0	What's going on everyone? This is David Green, your host of the BiggerPockets Real Estate Podcast.
0:10.0	The show where we are with the information that you need to start building long-term wealth through real estate today.
0:15.6	And today we have a seeing green episode. If you're watching on YouTube, you see the green light behind me,
0:20.7	and you know that that only means one thing. I'm filming this in front of a
0:25.0	traffic stop at an intersection. Just kidding. It means that we are doing Seeing Green and I've
0:29.5	brought some help. We start off the show with James Dainard who helps answer a question for me from one of the bigger pocket staff members actually which he does from his yacht and then James realized in the middle of the interview that he did not want to be on the interview he wanted to be yachting around so I brought in
0:44.9	Rob a little yachty Abasolo to sort of support me with this and he's here to take over the second
0:50.3	portion in today's show we get into some really good stuff, such as why expensive
0:55.8	markets tend to appreciate more than cheaper markets. What to do about turning your primary
1:01.6	property into a rental if it doesn't cash flow when your house
1:05.0	hacking strategy doesn't go according to plan.
1:07.8	When you can count expenses for a rental property and when you can't and more importantly what
1:12.1	you have to do to make it
1:13.7	eligible to count those expenses and more. Up first we've got a question from
1:18.7	NOAA Bacon in Colorado so Rob why don't you go check out the vacancy on our Scottsdale
1:24.2	property and make sure we're getting that sucker filled and then be back
1:27.1	lickety split. Okay but before I do if anyone here is listening and you want to
1:30.5	submit a question remember you can always go over to BiggerPockets.com
1:34.0	slash David to submit your questions for the next episode of Seeing Green.
1:38.0	Noah Bacon, the BiggerP's Community Manager.
1:42.0	Noah representing BP, what you got for us today? the bigger pockets community manager.
	...

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