myles - I am going through a similar exercise here. It is very hard to find properties that would cash flow. I also considered what you said - I can put a large enough down payment so the property would cash flow. Actually if you think about it - any property could cash flow if you put a large enough down payment.The problem is that you may end up tying to much money in the property that it may hurt your return on investment (ROI). For example, would you invest 100,000k to get $200/month ($2,400/year)? When you do the math you end up with 2.4% ROI. You can get better rates elsewhere (i.e. CDs). You could also factor in the property appreciation, tax benefits and principal payment by the tenant to get your ROI higher. However how much higher would you be able to get it?So for now I will stick with my original plan of getting properties low enough that will allow me to cash flow and get a good ROI. Even if it will take me few months to find them.Good luck!
Myles, I live and starting to invest in NYC, there is NOO 2% rule here. Try 65-80% rule. If you find any (2%) please let me know. .