The property is currently being rented for $2,400 with an immediate positive cash flow of $1,000.

Monthly mortgage payment for 30 years with 4.5% interest rate is about $1,400 (total monthly).The property is currently being rented for $2,400 with an immediate positive cash flow of $1,000.

In this case it sullies (in my opinion) their reputation, is a huge waste of time, and might implicitly validate a strategy that won't yield a positive result.  

Don't rationalize any numbers, or use anything other than cash (i.e. equity, appreciated gain, tax deductions, ...) since those other items are NOT CASH.3 - If you have a negative number, that means you get more cash back in your deal, within the first year, than you spent (so in this case...used)...and you have a winner.4 - If you have a positive number, that means you have spent money to buy this property...your money.5 - If you fall into the #3 category, you have recovered all your initial cash (seed money).  

Be Obsessed or Be Average by @Grant CardoneI have so much more to recommend but I have to say the books above have created such a positive impact on my life!

Lastly, if your able to buy using the 1% rule you have enough built in positive cash flow that will enable to ride out the downturn.

Christine Swaidan , Kristina Heimstaedt , thank you for the feedback.

But how do the investments go from negative to positive 6%? 

You seem to really understand the position I am in with trying to find the right locations within SA. 

Can anyone offer any feedback?