Struggling with "cash flow positive"

[Craig Oram]

Hi all,

I am trying to figure out if I want to buy a property.  Situation is this...  

Rented at $1600/mth

House cost $215k

Fixed cost are PM, HOA, INSURANCE AND TAX = 160+13+50+230=$453

Current mortgage rates are my struggle.  If the rate were 4.5% (which it is not) at 100% leverage I would break even or make about +$10/mth.  with the rate at 5.125% I'm paying -$80/mth.

Now as with most people, I will put down 20-25% and "artificially" make this positive ROI. But here's the rub, will the rent increase over time work out to positive ROI in the above scenario? What time is considered reasonable to wait? What about equity?

What do you do when faced with this?  

Are there experts I can talk to that might understand the area better then me and can help me make a judgment call?  BTW the property is located in Fleming Island (Jacksonville) Florida.  

Couple of things about me to calibrate everyone.  I own a couple of houses, all of them turnkey besides my own.  I am a Semi-Conductor professional(PhD) with two small kids and as such all of my time is used and the option of a more active investment is very difficult for me.  I have most of my money in the market and cash assets, and I do actively manage it because I can do it from work and it does not disturb my coworkers.  

So many questions... so little time.  With interest rates on the rise I am struggling.... :-( 

BTW I am aware that fixed cost are not the whole picture... maintenance and vacancy blah blah yeah yeah I know.  

[Scott Voytko]

I live in Fleming. that’s actually decent numbers FOR Fleming island.  Fleming Island will not give you great cash flow... it will give you good appreciation and stable tenants .  I own several in Fleming and would buy again if given the option .