0 down but negative cash flow investment property, should i do it

[Dennis N.]

Hello everyone! My first post here and is a complete noob in real estate investing :)

I have a chance to put a 0 down on a condo in a A grade area that cost 400k and rent income is around 2400 a month. 0 down will result in ~1k negative cash flow per month. Or another option is 25% down with ~100 positive cash flow per month.

Is either option a good deal? or should I not do this as all. Any advice is appreciated thanks!!

[Winston Covington]

In the early days of my real estate career, I would buy nothing down properties strictly betting on appreciation.  That is called speculation and I had more losers than winners. Properties that have negative cash low are called alligators because they eat up your savings on a monthly basis. Unless you have a way to improve the property to a positive cash flow position, stay away from the alligators.   Save your money and a lot of headaches…focus on positive cash flow properties and you will be a lot better off.