Would you buy a property that was break even with 75% LTV?

[Alex Silang]

That's what the deals look like in my area. ~$800k for a triplex. With 25% down, you'll essentially 

breakeven.

BUT

* Approximately $600/mo principal paydown.

* Decent growing area (maybe 3% appreciation). I know that there are some people here (often in the Midwest) that hate to rely on appreciation. Well, anything on the coastal areas have been cruising on counting on appreciation.

* Rent raises

So I've never done this before - when I bought my previous two properties there was decent cashflow from day 1. Any thoughts on a break even property?

[Seth McGathey]

I think break even is fine assuming you mean breaking even after capex, management fees etc. Because some people make the mistake of not leaving anything for some of those "extra" expenses. So they are actually negative cashflow pretending to be breakeven. 

But the real question, why not invest somewhere else? You even mention the Midwest, which is where I am at. In my market of Milwaukee you would get 2-3 properties for $800k. I bought a duplex last year for $300,000 and I am cash flowing $500 already and that is even with one long term tenant being below market rent because I didn't want to jump her rent double in one jump.