Is Zero money down a smart move?

[Jonathan Taylor]

Hi Folks,

I'd love some feedback as I'm going through the motions for my first property and I'm not sure the best route to take.

I'm involved in a loan program that, if I wanted to, could put ZERO money down on a multifamily property. I would be living in one unit and renting out the others. I have been running the numbers on all the properties in the 700s for tri/fourplex and none are cash flow. Ill be be paying 800-1500 out of pocket.

I'm in LA, it just isn't happening at my price point. So here is my question.

Should I buy a tri/fourplex for $700-800,000 with zero money down, then buy an investment property elsewhere (probably long distance) with the money I had been saving for a downpayment? 

OR 

Should I put that money toward the down payment of the multi family to reduce my overall mortgage? Its only 50,000 grand so the downpayment doesn't affect my mortgage all that much.

What do you think? What other info is needed to make the best choice here?

Thanks In advance

JT