should I be paying out of pocket monthly just to cover mortgage?

[Deven Wolfe]

I am looking at a duplex with a monthly mortgage higher than the rent being received. One tenant has a lease until next July, and the owner wants a 6 month lease after selling with a set price, and none of that is including the utilities. My Real estate agent told me that its normal for an investor to pay out of pocket to operate an investment property. To me that sounds upside down, thoughts?

[Steve Vaughan]

I have a couple I have to feed $100-200/ month but they have a lot of equity and are on short loan terms.

I need 5:1 paydown to neg cf ratio. For example, my -$100 cf pays the loan down $500/mo.  The -$200 cf pays down $1100. The -$300 doesn't matter much as a portfolio %. 

I am talking about cash-flow, not gross rent minus mortgage.  If your gross rents are less than your payment, your cf will be hugely negative. You haven't accounted for op expenses, cap ex or vacancy & collection losses yet.

Your agent doesn't sound like an investor.  Most aren't.  Find one that is vs just listening to someone that took a simple test mostly about marketing.