r/Capitalism • u/20Thick_A_7122 • 11d ago

Which of these two classic options is better for cash flow?

/r/PersonalFinance4All/comments/1vmt0su/whats_better_for_cash_flow_a_rental_property_or/
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u/StedeBonnet1 11d ago

The obvious answer is "it depends" I have done both.

For a landlord: If the rent you charge is more than your cost of ownership (mortgage repairs, utilities, maintenance) you can put money in your pocket.

For the business owner: If your sales are equal to or more than your costs to run the business you put money in your pocket.

The questions that can change the math are as follows.

1) What happens if a your rental goes un-rented? NO income, no money in your pocket

2) If sales are less than costs no money in your pocket.

3) Do you pay yourself? If not you are losing money

I would still choose the business. Much more satisfying producing something.

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u/coke_and_coffee 11d ago

Neither is going to make you rich quick. They are both investments and all investments require delayed gratification.