There are two types of return from a rental propertyCash Flow & Appreciation.I normally also aim for a minimum of 8% return between Cash-Flow and Appreciation.Appreication, nationally, is around 2% to 3% annually.Therefore, your goal is to get the cash-flow to be about 5% to 6%.The issue is interest rates being very high, you would therefore, need to buy at a pricepoint where the numbers still make sense.You can always put down more of a downpayment to cash flow, but that will impact your cash on cash return calculations.Best of luck!

Is it still not recommended to invest in this negative cash flow property. 

If all goes well, we should be cash flowing right away. 

I am a local agent here in Sacramento & I am a house hacker myself with 2 properties here that now cash flow.

Purchase price: $72,000 Cash invested: $107,600Case Study: Cockroaches to Cash FlowProperty AcquisitionI found this property through MLS.

I would, If in this position, take the equity in the form of a HELOC and purchase a cash flowing asset that would not only pay for itself but pay for the cost of the money while putting cash into my bank account each month. 

The sponsor is likely suggesting that your monthly cash-flow will be shielded by depreciation and you will likely see your 'tax hit' when the syndication disolves which in industry standards is likely 5 to 7 years.

However, most of these properties still cash flow well (or enough to cover PITI). 

Your cash flow is positive on paper, but how will that look in reality?

Bought a triplex in 2011 with all cash in my retirement account.