Rental Analysis Tool

[Thomas O'Donnell]

Hey all,

For some reason I keep getting negative cash flow/numbers on all the properties I am analyzing in San Antonio/Austin TX. I'm not sure if I am maybe filling out my estimations wrong and it is leading to this, or these properties really would be losing me money (besides appreciation). It might be that I do not properly know how to enter in ARV or rehab values. I'm not too sure what I am doing wrong but it doesn't seem right.

[Marshall Leipprandt]

@Thomas O'Donnell I've run some numbers on properties in San Antonio and my analysis almost never cash flows. However, I do think that areas like San Antonio and Austin are strong markets as opposed to the more "typical" cash flowing Midwest markets that have little appreciation. 

Without knowing your particular circumstance, I think that when you factor in the total addition a San Antonio or Austin property could have on your net worth (when factoring in rental income, long term appreciation, principal pay-down, and tax advantages), it will still be a strong long-term investment. If you need the cash-flow or are trying to retire early and live off of real estate income, these areas in TX may not be the best for you. If you have a career and enjoy your job and are using real estate to build long-term wealth, I would still give these cities some thought.