Finding deals that justify pulling from HYSA

[Eric W.]

I’ve been searching in the Sherman/abilene areas for potentially starting out. These areas seem affordable compared to where I live in dfw. I would be looking for something in the 200k range and have anywhere from 100-130k for a down payment. 

My issue that I’m having trouble getting over is that down payment money is currently yielding 5.5% in an HYSA with no risk or stress. If I pulled to put on a rental property for around 200k then after property tax, property management, mortgage, insurance I’d probably be cash flowing much less than my 5.5% at the moment. 

Would this be a bad idea to pull from the HYSA to enter real estate investing right now? Would it be better to just wait for rate cuts then jump in.