Rarely, - Buying a rental property with a negative cash flow is akin to making a regular, required deposit to a retirement account. What makes it riskier is that you must continue to make those deposits, come heck or high water. The negative cash flow property may povide you with future profits from apprecitiation, and possible tax advantages in your future tax returns. But for the near term, negative cash flow situations are only for the well-to-do, - people who are well insulated from the recession.
There are so many positive cash flow opportunities currently, why go negative?... more