Negative cash flow for 2nd rental?

[Farooq K.]

I have a very good cash flow first rental and looking for possibly adding a second rental however most homes near me are 400-500k range Gilbert Chandler area and that’s the area I most likely want to invest in. Doing 25% down most these homes are like -300 to -409 cash flow. So does this make sense or what would you suggest here put more down like 40% I know everyone says use leverage and keep expanding and scaling but how do you do that when interest rates at 7% and cash flow is clearly negative. Thoughts? Also if town homes keep you out of negative equity are those a good idea ?