Single Family Homes and Cash Flow

A lot of times investors will get into real estate investment with buying a SFR or single family residence. These are great for introduction to real estate but be careful. A lot of SFR are cash flow negative because the open market demands a price in which people want to live in them and not rent them for a profit. Even if you place a sizable down stroke on them to provide decent cash flow, you have just ruined your cash on cash return and it would be more profitable to get it into other ventures or even other buildings. its a balance of a lot of factors.