The numbers are wrong! But I'm still buying

[Thai Tang]

Good morning fellow BPers, so I'm a new to REI and have been looking for investment SFHs in Sacramento, Ca for the past few months between $230k-$280k. So I'm using the rental property calculator and I'm not getting positive cash flow unless the down payment is 30-40%, respectively.

Example @ 20% down

Example @ 40% down

So, even knowing I'll have -$182/month cash flow if I only put 20% down, am I crazy to still buy the property? 

I figure if there is a $50k difference in the down payment, I can put aside $10k for the property and use the remainder toward the purchase of another property. Technically if I have -$182/month cash flow but I have $10k aside then I should be covered for future repairs and maintenance.... right?

I'm not trying to buy for appreciation in the future nor am I looking for immediate passive income, what my goal is to have passive income 15 years from now for that reason alone I feel like this is a viable route for me, as far as the numbers go. 

Am I being crazy or just plain ignorant? 

Thanks for your feedback

Thai Tang

[Joe Villeneuve]

Q:  So, even knowing I'll have -$182/month cash flow if I only put 20% down, am I crazy to still buy the property?

A: Yes

I figure if there is a $50k difference in the down payment, I can put aside $10k for the property and use the remainder toward the purchase of another property. Technically if I have -$182/month cash flow but I have $10k aside then I should be covered for future repairs and maintenance.... right?

A:  Just a rationalization for a bad dedal

I'm not trying to buy for appreciation in the future nor am I looking for immediate passive income, what my goal is to have passive income 15 years from now for that reason alone I feel like this is a viable route for me, as far as the numbers go.

A:  So why are you accepting negative cash flow then?

Am I being crazy or just plain ignorant?

A:  Take your pick.  Both would be correct answers