Negative cash flow rental

[Yinette Roa]

hello fellow investors, Im in need of some guidence on my first (intentional) rental investment purchase. 2unit property in a type B neighborhood currently vacant. A few things that are making me rethink the deal fisrt thing the appraisal came back at the exact purchase price (needs some work not mayor that i know) first lender asked 35% down instead of 20% (original quote) because debt service ratio. Current agreement expired but i have a second quote diferent lender 20% down but at a 8.5% making the dsc 1% but after capx and vacancies i will have a negative cash flow deal. Is this a good deal for my first deal. Should i look a better cash on cash deal or should i do it for appreciation. Any advice is a good advice at this point. Thank you so much in advance.

[Harish V.]

Quote from @Zachary Inman:

Cash flow is something you can control, appreciation is picking a good market and hoping for the best. If the deal is negative, then you greatly increase your chances of it going sideways. 

 You cannot retire on appreciation and no cash flow. You can retire on good cash flow and no appreciation. That should answer the question.