Cash flow with rising interest rates

[Marcos Falcao]

How are you guys able to make deals cash flow with new rates (assuming traditional bank financing)?

For example, a retaltively cheap house in the Houston market is listed at $250K. Assuming 6.73% rate, 20% down, 30 year note, and taxes and insurance, we're looking at a monthly note of $1,900 per month. If HOA fees are included, then its nearing $2,000 per month minimum.

The three most recent rent comps in the neighborhood are in the $1,500 to $1,800 per month range. So how are you guys making long-term hold deals work? I know this is just one example, but this is a relatively cheap house so it should cash flow under normal market conditions. 

I have come across this issue with nearly every listing I analyze. Am I missing something? Are there methods around this issue?