Huge down payment in hot markets?

[Vierra Wong]

I'm looking into my first multi-family property. I don't need immediate cashflow and prefer a market that has strong appreciation with potential cashflow in a couple years. Safe neighborbood. I've looked at several hot markets (Austin, Dallas, Sacramento, Southern CA) but almost everything would require about 40% down to break even. I can do 40% down but don't think that's a wise use of my cash. I've done the calculations on turnkey properties as well as fixers where there's opportunity for forced appreciation, but the rents never cover an 80% loan in addition to the other expenses. Can any investors in the CA or hot TX markets chime in if they've had the same experience? BRRR doesn't work when the rents don't cover the refi loan on the ARV. Thanks in advance for your input!