Rookie question on negative cashflow investment

[Ven Bud]

After hearing to lot of bp episodes on negative cash flow, I have a question.

I am currently living in my primary residence and planning to purchase an investment property, and obviously it is going to be a negative cashflow (bay area), but I am of the opinion that as long as the rent on the investment property is atleast going to be greater than my current primary residence mortgage it can still considered as positive cash flow investment.
The investment property is going to be in a much better location (for office commute, bay area proximity) than my primary residence. I might be totally wrong in my thinking, what am I missing? Is it still not recommended to invest in this negative cash flow property.

[Chris Seveney]

Quote from @Ven Bud:

After hearing to lot of bp episodes on negative cash flow, I have a question.

I am currently living in my primary residence and planning to purchase an investment property, and obviously it is going to be a negative cashflow (bay area), but I am of the opinion that as long as the rent on the investment property is atleast going to be greater than my current primary residence mortgage it can still considered as positive cash flow investment.
The investment property is going to be in a much better location (for office commute, bay area proximity) than my primary residence. I might be totally wrong in my thinking, what am I missing? Is it still not recommended to invest in this negative cash flow property.

 It depends. As others mentioned can you afford the negative cash flow? Are you getting the property at market rate or below market rate? Is it in an area where assets have been or you believe will have appreciation?  For example I would rather buy a property for a $100k discount that may have negative cash flow of $500/mo month for 3 years than pay market value for a property that cash flows $200/mo. Why ? Because I still have that equity and if I were to liquidate it I would be better off.