I only do this when I suspect the worst, and want to get to the bottom of it.

You can pay the normal 30 year (or whatever your amortization is) amortization principal and interest payment, you can pay interest only, or you can actually have the option of paying a very low negative amortization payment.

I haven’t made my first deal yet, just doing my homework. Ill use a home I passed on (I think it was good deal) for an example. It was a 2/1 with full unfinished basement. New AC, Furnace and newer WH. No structural ...

:wink: I just dislike the negative, doom and gloom talk, there are ways and means to get around most situations.

This is a market where realtors were touting the huge appreciation, that made it ok to have a negative cash flow or so they said.

So generally the buyer at the sales is the borrower as no investor would want a deal with negative equity.BTW, that's not always the case, lots of inner city Dallas and Houston deals actually sell to third party buyers on the courthouse steps.

Now there's no more negative cashflow, but some major repair items still exist, which I can't put more capital into having repaired.I've learned a great deal, but haven't been able to recoup the capital investment that was sunk into this project.

A major guideline that goes with 100% purchases is "negative cash flow".

So after expenses I make $8,000 and I only had 20 mins in the deal.

I had a response where I was told that I was going to be $3,000/mo negative on a property I thought I was going to be break even on.