Do you ever purchase a property subject to with negative cash flow?

[Owen Schwaegerle]

Do you ever purchase a property subject to if the property has negative cash flow?Here's the scenario. Purchase price $650K, subject to existing $600K of financing at 3.625%, $25K down, $25K owner carry with principal only payments. Rents are currently $3200/mo.In the scenario it would be getting about -$1,000/mo.Open to hear your thoughts.

Initially it doesn't make sense to do. You could justify it for the tax savings and principal pay down.

[Account Closed]

Quote from @Owen Schwaegerle:

Do you ever purchase a property subject to if the property has negative cash flow?Here's the scenario. Purchase price $650K, subject to existing $600K of financing at 3.625%, $25K down, $25K owner carry with principal only payments. Rents are currently $3200/mo.In the scenario it would be getting about -$1,000/mo.Open to hear your thoughts.

Initially it doesn't make sense to do. You could justify it for the tax savings and principal pay down.

Subject To with negative cash flow, is like filling a soda can with vinegar. It may look sweet, but there is no denying it's goining to taste really bad.