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All Forum Posts by: Budhavarapu Ranga

Budhavarapu Ranga has started 1 posts and replied 1 times.

Hi,

Me and my friend OOS have bought a new single family home in Buda TX as a rental investment. The idea is to expect a negative cash flow, however bank on the growth to achieve a good return. This is in the east side of Buda in 78610

Property price is around 340,000 and the monthly payment for 80% mortgage at 7.125% with property taxes (2.32%), HOA and Insurance comes out to around 2,600$

Rental comps suggest around 2200$ gross monthly rent. 

Since we are two people, we can manage the negative cash flow together. However since this is our first rental, we are getting cold feet and suspicion that it might be a money pit or go wrong drastically. We ran numbers across several probabilities and it seemed like a safer bet when we purchased. 

Experts, can you please chime in your opinion about this? Really appreciate your time.