The QuestionIs it a good idea to have a rental property with negative cash flow? 300K house with $2000 rent and 5% downpayment.
Generally, no. There are likely exceptions to that answer, but in today’s interest rate environment and increase in real estate prices, unless there’s a big upside to the real estate market for this specific house, the negative cash flow could pose long-term complications for the other areas of your financial life going to support this asset rather than support other positive-cash flow investment opportunities. This is a question of opportunity cost. What does the outside cash-flow you need to pump into this one cost you in future returns?
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