Struggle with initial out of pocket cash

[Michael Kissel]

Looking for my 1st property and found a great 3 unit yesterday.  Done the analysis and return and cash flow is there but the asking price is $180K. Very little work would need to be done to the property.  With 20% down and closing costs, that means approx. $45K out of pocket initially.  that worries me as it would be several years to get that back.  is that normal?  Is there anyone in the Buffalo, NY area I could talk to about financing so initial out of pocket would be less?  

[Miguel "Mike" Perez]

You should start with what your goals are in order to answer your question but here's how I look at it.

If you did proper deal analysis you would know your TRUE expenses and income and could calculate your cash flow. This site's rental calculator is a good start.

If you know that then you could calculate your Cash on Cash Return or ROI on any cash you would put down on a deal.

If you have $45k, do you have a better way to get a good ROI? If you do, then do that instead. If not, then this might be a good way to get it generating some additional cash for you.

Hope that helps.