Appreciating in value is not the same as generating cash...
by NavyJoe (2019-01-11 16:48:44)

In reply to: 1/2 reported "making money"  posted by OITLinebacker


This is not an apples-to-apples comparison, but the house I own is appreciating in value but the rents I generate from my tenant don't cover all the costs. Net worth is increasing but cash flow is not. That lack of / negative cash flow may encourage me to sell the house, or it may not. The income I make from my full-time job is enough to cover the monthly shortfall...


Similar to housing, there are a lot of emotional and irrational decisions that drive certain individuals to purchase and maintain ownership of professional sports teams.



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