Can't make rentals cash flow without cash

[Julie Noone]

I've listened to podcasts about using other people's money for RE investments, but once I figure loan payments, we can't make the properties cash flow well without more free and clear cash. Example: $990k 9-plex, gross rents are $7000/mo with room for growth, minimal expenses. It's a better than average deal in terms of turn-key, location, etc, and I realize we're below 1% to start. $90K cash, $500k from a comm lender at 7.2% + 2pts, $400k private lender at 4% no fees/expenses. Once I figure loan payments, it cash flows at about $275/m. With 6-8% rent increases over 1-2 years, we're at $580/m. Hardly seems worth it. It definitely works better if we get all private lending at 4% (that'd be nice). Maybe we're not finding the right kind of "other people's money?" Thanks - appreciate your input.

[Jay Hinrichs]

Originally posted by @Timothy M.:

400k private lender at 4% with no points/fees? Err... that individual must not like making money.

in the real world that is Mommy or Daddy or grand  parents and maybe a rich uncle..  fact is 100% or so leverage on most any asset is not going to cash flow unless you buy absolute dumps and repurpose them.. or you can get rents to really rise over a short amount of time.