Zero money down.

[Michael Hites]

Does it make sense to buy a 4 year old home ($240K) with zero money down (USDA), seller paying all closing cost, payment around $1870 PITI, comparable rents are $1850, but I would factor $1700 to be safe (-$170 a month). This area appreciates 5% a year.

[Ben Fernandez]

Using the seller concessions, work with your lender and agent to try a combination of closing cost coverage and point buy-down to get a break even point where you aren't negative every month.

You are already missing operating costs that need to be factored into your overhead and not only PITI. (Vacancy, maintenance, turnover, water/sewer/trash, capex, etc)

- Your holding time needs to be factored into the plan as well. 

But if you can stomach the little bit of negative cash flow that will not compare to the $12k of appreciation you are contemplating, you may turnout to be okay. (If the appreciation happens...)

However, you shouldn't be planning based upon unknowns - meaning appreciation. If that appreciation doesn't occur, your investment is unfavorable all around.