Assume a Loan - Negative Cashflow?

[Christopher Bell]

I might be crazy but…..would you?

Scenario: 

Have a chance to assume a loan that has 28 years remaining, 5% interest, and in a very quickly growing suburb of Raleigh NC.

The townhouse would lose approximately $300/mo. Total payment is $2150/mo and market rent is $1850-$1900/mo. 

Loan assumption Is essentially at market value $298k, but the $0 down outside of closing cost on loan assumption are what’s hooking me. I can put 25% down and get a $300k Townhome to cashflow near 0.

Also, the family is looking to buy a SFH and would be using my wife (realtor) to buy. Therefore, we would make about $8000-$12000 in commissions from the purchase.

Am I crazy to be considering this? 

[Chris Seveney]

What if home prices drop? That does happen - then you have negative equity and negative cash flow.