negative monthly expenses and negative cash on cash

[Erica Vargas]

I'm in the process of running the numbers on property that I'm interested in AZ. I do have an agent. However I'm running into a road block with the numbers. I don't have the 20% down so, my plan is to do owner occupy and qualify for FHA first time home buyer. When I run the rental property calculator, I come up with negative cash on cash and negative monthly expenses. I eventually do want to rent it out. Not sure how to make the numbers work? I have been reading the book "Hold" one of the points made is that profit should be locked in immediately, otherwise you are paying to much. Any thoughts or suggestions to point me in the right direction would be so helpful... in how to go about trying to get the numbers to work better. I was told that I could, but that would take me into neighborhoods that have higher crime? that line seems hard to navigate through.

[Mike Makkar]

@Erica Vargas, its hard to be cash flow positive with a FHA down payment standards (3% down I assume). Once you house-hack, look at increasing the down payment to investment style loans, ie. 25% down with a 30 yr mortgage and work the numbers. If you're at cash flow positive, at least 200 to 300 per month, then it should be sustainable.