Deal Only Works All-Cash

[Jon Fletcher]

I've looked at two deals recently where the price seems fair on the surface. But the current rents are so low, that the deal only works as an all-cash purchase. Taking out a conventional 25-year mortgage, at 75% LTV, assuming 6% interest, results in a negative cash flow!

Have other investors run into this? What are your thoughts? My gut reaction is to walk away, but I'm getting FOMO that I may be missing the bigger picture. I intend to hold my properties for the long-term.