Negative COC ROI 1st year OK?

[Matt H.]

First time real estate investor. I'm about 50k short to put 20% down on a quad-plex. I'm trying to determine whether to apply for a 50k hard money loan to help secure enough down payment for what seems to be a really profitable property, however I would be out of pocket nearly $2100/month the first year while I repay the 50k loan. 

The units produce ~2300/month in net income (one unit is an Airbnb, so it varies). If I take a 50k loan from a hard money lender, I will essentially owe ~4400/month for this loan for 12 months. With net rental income offsetting some, I will be out of pocket ~2100/month for the ~12 months it takes to repay this. I can easily make this payment and would attempt to pay off the loan in 6-8 months, as I have plenty of excess monthly cash flow from my day job, but I just don't know if it's wise to be in the hole for potentially the entire first year? The units have a property manager who has done a great job and I would keep them, and the net income from the rental takes into account all fees, with a little cushion built in for monthly maintenance expenses as well (if any). 

After the first year, this property will have a 16%+ COC ROI and it is in an extremely popular area (.5 miles from a D1 University) and the only time it's units are vacant are usually only the ~10 days it takes to get new tenants in. I suppose it would take the entire second year to get my 50k back, but I just don't have access to 50k additional cash right now, as it would take me ~6 months to save up that additional cash.

Would taking an additional 50k loan to secure the 20% down payment be wise, considering this property appears to produce significant net cash flow (subjective, I know) and also has the potential to hold it's value and keep appreciating down the road?

[Robin Simon]

The numbers make sense but... what kind of loan is the mortgage going to be?  Need to be careful there that your primary lender (the other 80%) will be OK with having a second hard money loan on the property