Randy Ramadhin

I get asked this all the time from already and newbie real estate investors why and how I invest in condominiums. I get comments like “You can’t cashflow with the maintenance fees!” or “The prices just don’t make sense!” I usually respond by saying cashflow with freehold is usually just an illusion.

Most investors pocket this net cash inflow after expenses every month until there is a major repair like a roof repair, roof replacement or furnace replacement. Then the investor usually has to borrow to get the $5,000 to perform the repair. Now that was a huge negative month!

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