However, I recently stumbled upon an intriguing concept called PadSplit that allows you to leverage the multifamily concept within a single-family property, ultimately maximizing income potential.

However, the majority of A/B properties purchases with 20% down would be cash flow negative currently.

My question is would it make sense to save for down payment for another primary residence and rent this home out with negative cash flow to get into the REI game.

Many arrive at this strategy through paid mentorship, while others settle on the strategy through their own education because its such a  widely discussed strategy with so many industry participants peddling the concept thanks to the low barrier of entry and ancillary services and fees that are generated.  

A smaller down payment might lead to a break-even situation or even negative cash flow.

The concept works!

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

If they prove to be loyal I will give them a lower percentage for being loyal, but not accepting an "I will work with you forever" deal with no proof of concept or relationship.

I can't recall all the reasons I rejected it but one HUGE primary flaw that is so fundamental it made me question everything else about their software - there is no concept of a portfolio.  

There aren’t too many options that I see; this could tip over into an ongoing negative situation.