Yes, but only short term. For example, I only do rentals when I can make them cash flow positive monthly. But there are times when say, you need to replace a

Yes, but only short term. For example, I only do rentals when I can make them cash flow positive monthly. But there are times when say, you need to replace a water heater and that requires a permit and licensed plumber, so say $600-$1200 in my area depending on the unit etc. So I might lose my cash flow positive side for the next few months to pay that back, but in the end the net/net of the unit will be cash flow positive. I did have one home we sold at a loss because of the housing crash. It sucks, but it also taught me a number of valuable lessons, and really improved my game. With real-estate, there is a cliche saying, you make the money when you buy the property not when you sell. This is so true. If you buy it right, you will do well, when you buy it wrong it will almost always bite you. Flipping is an easier place to lose money if you aren't careful. But if you are flipping you aren't doing it for passive income. I do like flipping but it is not passive and in my area has been hard the last few years because of the local market trends.