They all give it at least a half hearted go; there’s something in the human psyche causing otherwise rational people to believe that they can enter a specialized field in which they have no experience, no knowledge and limited capital and complete with people who are spending $10,000 - 30,000 monthly on marketing and who have been doing this for 20 years - and in an environment where legal “traps” lurk everywhere.  

That means being ready financially, mentally, and emotionally to make decisions quickly and rationally when a deal appears.As for the “young and new” perception, the best way to overcome that is preparation and honesty.

You can use a 15% down DSCR lender, work seller credits, and rent pro-rations/security deposits to lower your down payment.That is how you build some easy cashflow.

Don't fall in love with the property and then rationalize bad numbers.

Welcome aboard.There is no pro-ration of anything. 500 hrs, 100 hrs, anything.

Below are two real underwriting examples I’ve been working through.Example 1: Duplex (North TX) — “seems affordable” but still ugly at 0% downPurchase price: ~$368kRents (conservative): $1,400/side → $2,800/mo totalTaxes: assumed ~2.20% of value → about $8,078/yr ($673/mo)Insurance: placeholder $180/moVacancy: 8%Maintenance: 8% of rentCapEx: 6% of rentUtilities: tenant-paidFinancing: 0% down, ~6.375%, 30-year amortizationResult (full rental): NOI: about $1,331/mo Mortgage P&I: about $2,295/mo Cash flow: about –$964/mo (≈ –$11,572/yr) DSCR: about 0.58Even with 10% down, it was still negative: Cash flow: about –$735/mo DSCR: about 0.64Example 2: 4-plex (DFW) — looks good on listing, but conservative underwriting is still very negativePurchase price: ~$775kRents (conservative): $1,450/unit × 4 → $5,800/mo totalTaxes: about $14,139/yr ($1,178/mo)Insurance: $6,000/yr ($500/mo)Vacancy: 8%Maintenance: 8% of rentCapEx: 6% of rentUtilities: tenant-paidFinancing: 0% down, ~6.375%, 30-year amortizationResult (full rental): NOI: about $2,846/mo (≈ $34,149/yr) Mortgage P&I: about $4,835/mo Cash flow: about –$1,989/mo (≈ –$23,868/yr) DSCR: about 0.59With 10% down, it improved but was still very negative: Payment improvement was only about $483/mo Cash flow: still around –$1,505/moWhat I’m trying to decide (and would love your thoughts on) Is it ever rational to buy deals that are negative by hundreds per month (or more), considering my goals.

Strong post — screening discipline is where most long-term performance is decided.One red flag I’ve learned not to rationalize is inconsistent employment explanations.

No coastal hangovers.We are not a bubble market.We are not a crash market.We are a durability market.And durable markets compound quietly.If you’re local, don’t let national headlines distort local math.If you’re out of state, this is one of the more rational entry points in the country right now.Confidence doesn’t come from optimism.

Even in "better" zip codes for investing I think the good old fashion ration of underwriting 100 deals to make offers on 10 so that you can acquire 1 at a decent price still holds true.

In reality, it’s been much tougher.Here’s the current situation:I live out of state (NY), so I rely 100% on property management.Management fees + maintenance + turnover costs have been higher than projected.One property has been vacant for an extended period.The other property’s tenant recently filed for bankruptcy, so collections are uncertain.On top of that, one property recently had the condenser unit stolen (HVAC theft), which added unexpected repair costs and more downtime.Cash flow has been inconsistent to negative.Because I work a full-time W2 job, I cannot offset these losses against my active income (not a real estate professional), so the tax benefits are limited to passive carryforward.Instead of “passive income,” it currently feels like:Capital tied upOngoing stress from distanceExposure to crime/tenant riskLimited immediate tax reliefQuestionable net return once everything is factored inI’m trying to step back and think rationally instead of emotionally.Options I’m considering:Hold and push through — improve management, tighten tenant screening, install cage/security for HVAC, and treat this as long-term.Replace property managers.Sell one or both and redeploy capital (possibly local, or even into index funds).1031 into something more stable (different asset class or market).Accept that long-distance C-class investing isn’t aligned with my risk tolerance.For those with experience:When do you decide to cut losses vs. ride it out?