Why you should never buy a piece of rental real estate that has negative cash flow.

We're going to get into all of that. Real estate is a great way to build wealth. However, it's important to be aware of the risks involved. And hey everyone, I'm Clayton Morris, founder of Morris Invest, a full service rental real estate company, and this video was born out of some real world

examples.

We've had a couple of clients who've come to us recently who've told us some horror stories about working with other companies.

And I'm not going to name names.

I've done a whole other video specifically on buying properties above the appraised value,

which you should never do.

You should seek out that video but again these clients have come to us and said yes last year or two years ago I bought a rental property with this other company and it was a turnkey company and they

were telling us that we would have negative cash flow meaning we wouldn't be

making any cash flow or negative cash flow for the first few years and that eventually

three, four, five years from now, you would be able to have positive cash flow on that property.

And I heard these stories, and I couldn't believe it.

We had a team meeting about this,

and our team was talking about how we've

had a number of clients telling us these stories lately and I said

you've got to be kidding me this is what they're telling people now in 2023 and

2024 that they have to buy investment properties with negative cash flow? Absolutely not. I want to go through exactly

why that is total garbage. One of the biggest risks in all of real estate investing

is buying a property with negative cash flow.

We all remember what happened in 2008, right?

You do not want to be underwater.

So what is a negative cash flow property?

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