Guideline #14: Cash flow sometimes equals deferred maintenance.
If you are buying an asset from a seller who is boasting about the cash flow generated by the investment, be very careful. Another word for "cash flow" is "deferred maintenance." It is fairly important to maintain your investment. Deferring maintenance may save money in the short term, but it deferring it too long often leads to rent reductions and lower quality tenants. It is a bad spiral to be in. The fixes don't get cheaper. Yes, it costs money in the short term, but regular maintenance extends the life of both real and personal property and preserves the quality of the asset. It is a discipline that really pays off in the long run.
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