., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

Quote from @Collin Hays: I had an inquiry today from someone interested in buying a condominium in the Pigeon Forge area to rent out.

- Each Housing Commission sets their own rent rates, based upon market rents for Class C properties in their area.You should be able to find an online list of S8 rents per bedroom for your area.

6) Where is your property being advertised for rent?

Vacancy hurts a bit more, but the biggest issue with renting out large homes is turnover cost.

You are LOSING money because you didn't even raise rents to cover those increases!

@Angelo Llamas If your cousin rents out the property, it becomes a rental once it's "placed in service," meaning available for rent, and he must report rental income and expenses on Schedule E.

We kept and rented our primary residence for three years before selling it (and we didn't have to pay capital gains taxes).Thanks!

Or do I just need to rent it out and accumulate more equity first?  

(income = 3 x monthly rent, Debt-To-Income, etc. can still be used!)