Very competitive market. Is this a terrible deal?

4 Replies

I agree with @Caleb Heimsoth . With a negative cashflow you're losing money each month. I mean what are you going to do if you need a new water heater or roof? Now you're out a lot more than 178.14 per month. Change the area where you want to invest or hunt harder for deals. Deals can be found in every market. 

Even in a tough market, negative cash flow should be avoided.  If you have a decent W-2 to cover the loses, you may choose to bet on appreciation, but this is speculating and can bite you in the behind.  Early in my career, I have bet on appreciation and over the last 8 years it's paid off nicely.  But I think it was more luck from the 2008 FMC recovery than anything else.  Now that I'm a bit wiser, I like stronger positions.  At the end of the day, it's all about your personal goals.  Best of luck to you!