How to account for Down Payment in Transactions

So, the “cash you put in” should be the net of the purchase price plus closing costs, less loan proceeds. If the loan proceeds exceed the purchase price + closing costs, then you’ll show a “cash out” situation.

This topic is actually discussed in detail here:
Net Cash Flow report not placing Sale Proceeds under Purchase, Sale, & Refinance

This help article also explains best practices for this situation:
Track Purchases, Sales, and Refinances