Would You Still Buy SFH If It Lost You Money MoM?

[Bob Asad]

Let's say you put 15% down on an investment property (2nd SFH, New Construction) and with property taxes, homeowner's insurance, and PMI the monthly mortgage is $4,300

However, in the market (location), most of the rents are around $3,500-$3,700

With an interest rate of 7.6%

Would you still buy the property knowing that you'll lose $800-$600 per month, but hoping to refinance at a future date (4-5%) to have cash flow, and also with appreciation since it's a good location and it's a new construction?

[Greg Scott]

Hell no.

Appreciation is not guaranteed.  You are speculating that it will happen when you need it.

Would you buy a stock that requires you pay it $800 per month, hoping it appreciates over time?