At what down payment would you want a property to cash flow +ve?

[Animesh Das]

Hello,

I understand that the answer to this question depends on the local market.  High cost areas, like SF bay area, would need higher down payment to have positive cash flow and vice versa.

That's why I am curious about what investors in different parts of country consider a good down payment %.

Please mention the state and city.

Thanks,

[Thomas S.]

True cash flow on a property can only be calculated based on a hypothetical 100% financing. If a property can not cash flow at 100% then it will never have true positive cash flow. DP/equity is buying cash flow that is not directly generated by the property itself.

At a certain point your cash/equity will be generating 100% of the cash flow turning the property into a liability.

At a opportunity value of 10% every 100K in equity draws $866 off the top of your rental income before any other deductions.

Like Jason I do not invest in any property that can not produce positive cash flow on it's own merit. I do not believe in investing in artificially generate cash flow and calling it "positive". It is not positive cash flow it is purchased cash flow. Big difference from my investing perspective. My money can do better outside of real estate.