Cash out refinance for 1st rental property

[Sabrina Espinoza]

Hi! My husband and I recently took out a cash out loan from our frst home. We are getting about $138,000 and we are looking at different options ex. Single family homes, multi family, condos etc. we are wanting the deal to make sense as far as the total rent of the property to cover the mortgage for the property as well as the $1200 loan payment for the cash out loan. I've being reading the forums and most people are recommending putting in as little as possible (20-25% down) instead of possibly purchasing a whole property "cash " with the $138,000. In my area that would get me a decent condo in a good area.  The only properties that are making sense on paper are the multiplex properties but it's the lower priced properties with potentially more issues as far as repairs. Should I just accept that the properties that are probably better options (better areas/newer builds) may just not cash flow enough to cover the payment of my cash out loan and mortgage payment for the rental property we decide to buy?