Cash Flow Neutral

Cash flow is king for property investing and ideally your cash flow should be positive. Cash flow neutral sounds good but can be risky and end up going into negative territory, which can be a problem for a cash strapped investor. The cash flow neutral position is considered to be a total return of 7% on property, this covers all expenses but does not give you any surplus. If you maintained a property at neutral cash flow, over time as your investment is paid off you should move into positive cash flow.

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