How Are you guys approaching Rising interest rates in your deal A

[Nader Hachem]

I'm looking to get my first long-term single family rental. I plan on buying and holding these rentals for the long run.. 10, 20 years. Right now, rental interest rates are a around 6.5-7% from what i see. How are you guys using this in running your numbers for deals?

Are you guys includes a future number, say 5.5%, and assuming you'll be able to refinance? Or are you using the number you guys are getting quoted for interest rates? I also include around 28% for vacancy, maintenance, capex, and property management expenses. I plan on managing myself for a while but when the load gets too heavy, i want to pass it on and still have the deal make sense.

I have a cash flow goal of $200/month/house which i use to guide whether i want to further look into this house and make an offer.

Thoughts on analysis for single family long term rental houses?

[Drew Sygit]

@Nader Hachem are you also going to assume all tenants will perfectly pay their rent and take care of all maintenance for you?

Don't recommend making positive asumptions to make a deal work!