I Bought 10 Homes That Don’t Cash Flow

Here’s how it’ll still make me $500,000+ using zero of my own money in

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The Story Behind this 10-Home Purchase

I recently bought 10 new construction homes that are negative cash flow today. And I’m still projecting $500K+ profit in 3 years—with none of my own money in the deal.

Sound crazy?

Let me walk you through it.

In this post, I break down:

• How I bought 10 homes with $0 of my own money

• The exact loan terms, seller credits, and capital stack

• The full closing statement and investor structure

• Why I’m okay with negative cash flow (and how I planned for it)

• The business plan to generate $500K+ in profit

• The risks I’m managing and how I built in reserves

• How you can use the same strategy to scale faster and smarter

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The Mistake Most Real Estate Investors Make (that Leaves Money on the Table)

Most real estate investors are taught that if it doesn’t cash flow, it’s a bad deal.

They run the numbers.

If the rent doesn’t beat the mortgage and expenses, they pass.

Then they go park their money in:

• CDs

• Treasuries

• Money markets

Earning 3–5% while their capital sits idle.

I prefer to use cash to buy real assets with 20%+ upside when you factor in:

✅ Instant equity
✅ Future appreciation
✅ Accelerated depreciation
✅ Tax deferral via 1031s

Wealth isn’t built on cash flow alone.
It’s built on equity, debt, and long-term thinking.

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The Real Estate Deal: Buying 10 New-Construction Homes

This one came from a local builder who had 10 homes sitting on the market. Owning a construction company, I get to know a lot of the other builders, developers, and construction owners around North Dakota.

This local builder built 10 spec homes and assumed they would sell right away, making their money on the backend with the upfront cost of building them.

The problem is…building new construction homes and selling them immediately is never a guarantee.

So, he was motivated to sell fast to make his money back.

He was also dealing with tough market conditions.

→ Interest on their construction loan was high
→ DSCR (Debt Service Coverage Ratio) was tight
→ The 10 houses didn’t pencil for cash-flow-focused investors.

But I saw the opportunity to make ~$500,000 on this deal, even if these homes would negatively cash flow and cost me money in the short term.

• Affordable product in a high-demand category

• Seller motivated to offload all of the homes

• Opportunity for seller financing

• Built-in equity day one

So I asked the builder:

What if I took all 10 of the homes off your hands?

We ran the numbers, and here’s how it came together.

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The $3.1M Purchase Breakdown (Using Creative Financing)

• Total Purchase Price: $3,181,000

• Loan from bank (80% LTV): $2,544,000

• Seller Credit at Closing: $352,000 ($35K per house)

• My Cash Due at Close: $206,481.86