“Subject To” Speculation and Why It’s SO Hard to Find Cash Flow

Episode #852

Is “subject to” real estate investing a mistake? Why is cash flow SO hard to find? And what do you do when you overpay for a property? With so many ways to build wealth with real estate, you’ll also need to be aware of the pitfalls. If you don’t know what you’re doing, you could end up with a property you paid too much for, with no cash flow and empty pockets. Thankfully, this is BiggerPockets, so we’re going to give you all the tactics you need to make your next investment a home run.

Put on your green-tinted goggles because David does NOT have a green light for this Seeing Greene episode. Due to this unforgivable offense, we brought another expert investor, Rob Abasolo, on to help David answer some of YOUR real estate investing questions. First, we hear from an investor who makes some great cash flow from her short-term rental but wonders if it’s worth all the work.

Next, an investor finds out that his new build property is selling for a significant discount—can he get out of the deal? Similarly, an ADU (accessory dwelling unit) investor is looking to develop but doesn’t know the best way to finance his new construction. David also answers some questions from the comment section about why investors stopped chasing cash flow so much. And finally, a realtor is concerned about the amount of subto (subject to) “speculation” in today’s industry. Are his concerns legit? Stick around; we’ll get into it all in this episode!

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Don’t Chase Cash Flow! Use THIS Metric to Analyze Your Deals:
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Subject To Real Estate: Why Investors Should Add This Tool to Their Arsenals:
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Show notes at: https://link.chtbl.com/BPRE


00:00 Intro

01:46 Quick Tip

02:19 Are Airbnbs Worth the Cash Flow?

10:27 I Overpaid For a New Build!

16:02 How to Finance New Construction

19:56 Appreciation...But NEGATIVE Cash Flow!

22:44 No More Cash Flow?

28:39 Is Subto Just "Speculation"?

38:51 Ask Us Your Question!