Is it wise to put more Down payment for Positive Cash Flow ?

[Kunal Bhatia]

I am planning to buy a Condominium as a rental property with 25% down and lowest interest rate  - However when I crunch the $$ I see a negative cash flow of ~$100

I can compensate the cash flow it by putting extra 5 % (~30.5K) and getting a breakeven ( Slightly positive cash flow)

Does it make sense to put this extra money (5 % 30.5K) ? Or would it be wise to invest this money some place else and get a higher return and which will in turn compensate the negative cashflow ?

[Bob Okenwa]

@Kunal Bhatia

Let's do some very rough math. If 5% = 30k, then the property is 600k? You are planning to spend 30% of 600k, which is 180k, to only cash flow $100 a month/$1200 year? Unless there is some crazy round 2 of the COVID/housing shortage/supply and demand appreciation on it's way (PS, not likely as we've already had it happen this spring), it's going to take roughly 150 years to get that 180k back. Maybe your great great grandchildren can enjoy the fruits of your labor once the property turns a profit.

There are much better deals to be had (on paper at least). Not sure where you are located or where you are buying, but this does not appear to be a good deal on the surface.