I am buying a multiunit rental and the rate I am getting is “ the rate will be calculated 5 business days prior to closing and will be fixed for 5 years at a rate of 275 basis points over corresponding federal reserve statistical release H.15 five year treasury constants maturity with a floor of 4.5%.

I will be negative 500$ on the monthly cash flow.The property is a duplex.

But it looks like you might be negatively cash flowing with 15 year mortgage!

Life is like poker, you have to make the best statistical decision based on incomplete information. 

With financing of 80% or less it's a negative cash flow.

@Demarcus CrumpI’ve been analyzing deals in my local market and most asking prices on MLS for 2 families tend to have negative cashflow and ROI.

If you have a cash flowing asset you can hold onto it indefinitely, if you have negative cashflow and are hoping for appreciation you will end up being a forced seller in a down market.

Statistically, most people generally “need” 70-80%.  

Yes you are buying near a peak and over paying for the area you are in, but if it meets your family needs and you are ok with those negatives then pull the trigger. 

So the experience has been pretty negative so far.