In this episode of Get Real Wealthy Season 2, Quentin talks about seven ways to turn negative cash flow properties into positive cash flow.
Quentin says that the problem with negative cash flow hinders the growth of your portfolio. If you have positive cash flow and even if the value of your property goes down, you would still be able to hold on to that asset for a longer period of time. The other reason is that banks will continue to finance. If you have one negative cash flowing property, maybe two and then you’ll get financing because you’re betting on the appreciation. You want to have a high debt coverage ratio when you consider rents versus the debts that you have on your asset, and that is why you have to have cash-flowing properties.
Quentin D’Souza is the Chief Education Officer of the Durham Real Estate Investor Club. Author of The Action Taker's Real Estate Investing Planner, The Property Management Toolbox: A How-To Guide for Ontario Real Estate Investors and Landlords, The Filling Vacancies Toolbox: A Step-By-Step Guide for Ontario Real Estate Investors and Landlords for Renting Out Residential Real Estate, and The Ultimate Wealth Strategy: Your Complete Guide to Buying, Fixing, Refinancing, and Renting Real Estate.