The main problem with negative cashflow properties is this. 

We were breaking even at first bhtbhave steadily developed a negative cash flow!

The idea is to expect a negative cash flow, however bank on the growth to achieve a good return.

My problem is that this house has a negative cash flow. 

Negative CF is foolish. 

It shouldn't be affecting your DTI negatively unless something's wrong. 

Using 50% rule (expenses excluding P&i is 50% of rent) here are the numbers;1800 (rent) - $900 (expenses) - 1468 (heloc) = negative $568/monthAt your rent point with that size unit, your expenses will ve less than depicted by the 50% rule, so let’s use a likely more accurate 40%1800 - 720 (expenses) - 1468 = negative $388/monthNow let’s imagine you self manage and you time is not worth anything (I strongly recommend believing your time is worth less or worth less than a quality PM would charge) with 8% further reduction so expenses are down to 32%1800 - 576 (expenses) - 1468 = negative $244/month. 

Any feedback positive or negative would be appreciated!

Here’s what you need to know about using your cost segregation study:If your CPA says your tax return is already going negative, it means you’re reporting a loss for the year.

This creates a negative initial position.