I hate to sound negative because I use to strongly believe in it.

Little, no, or negative equity means you need to so a short sale.

The statement showed a negative escrow of $8k (apparently our taxes and insurance), but the "next payment" was blank and read it was due 3/1/2011.

Rising housing prices coupled with modestly higher interest rates will incentivize lenders to further loosen lending standards to historical norms which will open up the buyers pool and effectively negate the loss of buying power from modestly higher rates.

Seriously it may have a negative effect on quite a few of the little investors but all, no way!

We try our best to keep all of the negativity and nastyness out of the forums.

So enough negative thinking, I'm going to borrow from his endless supply of, "It will work damnit!"

At $1700/month rent, you're still almost certainly going to have negative cash flows, unless you get really, really lucky.

Hence the property was no way near 2% at the start while the property did finish at over 2% after 10 years.Likely some serious negative cash flow for the early years with some tax benefits if the person has a day job.

Hardly ever though have I seen a deal with negative cash flow.