I bought a home that now loses money monthly because expenses exceed rent. Despite benefiting from increasing equity, am I making a financially unsound decision?
In a similar situation with my own property investment, I found that negative cash flow isn’t always a pure financial misstep. The loss is primarily short-term if you are relying on future property appreciation and tax benefits to eventually offset the monthly deficit. It is important to review your financial resilience and long-term strategy. While it might seem concerning to see continuous losses, if your overall portfolio is secure and you are comfortable managing a temporary period of negative income, it could be a calculated risk rather than a poor financial move.