Why is positive cash flow emphasized as a safety net in real estate?
Answer: Positive cash flow—having income remaining after all operating and debt expenses—provides a financial buffer during economic downturns. It ensures the property is self-sustaining, allowing the investor to hold the asset long-term (Endurance) even if the market value temporarily dips, eventually benefiting from long-term appreciation.
See why cash flow matters: Think Big: Real Estate Investing Strategies of the Ultra-Wealthy