Other factors to consider include market growth, local laws, property management, and financing strategies.Good luck!

The key factor for depreciation is when the asset is placed into service, not necessarily when it was paid for.

A 4/3 could potentially rent for $3,500 - 4,000/room/semester.Clearly some other factors to consider, but it would be great to hear any insight from folks who may have done this in the past.

Will depend on several factors like the type of property, type of tenants, your risk tolerance, other assets you own, your estate planning, laws where the property is located, etc.

While opinions may vary, I rely on data to help drive real estate decisions and planning.Key ConsiderationsEducational Attainment: 77008 boasts higher numbers of residents with bachelor's (12,241) and master's degrees (5,739) compared to 77063.Demographics: 77063 has a higher percentage of foreign-born residents (41.02%) which typically indicates a strong rental market and with 76.86% renter-occupied versus 32.60% in 77008.Economic Factors: Median income in 77008 is $140,609 with a low unemployment rate of 3.37%, whereas 77063 shows lower median income ($51,899), higher unemployment (9.99%), and more families below the poverty level (16.51%), which may indicate economic diversity but also potential rental payment risks​​.Age Distribution: 77008 has more middle-aged residents (35-54) [8970 compared to 6,115] and a slightly higher proportion of young adults (25-34) compared to 77063 but both are popular with younger adults suggesting strong rental markets equally exist.Housing Market: 77008 features a higher percentage of family households (52.39%) and married-couple families (44.77%), suggesting stability and potential for property appreciation.Digital Advertising Demand: Houston Heights apartments (77008): 50,000 average monthly searches.

From unexpected fees and rigid terms to missed opportunities due to slow funding processes—these factors could be impacting your bottom line more than you realize.Have you ever re-evaluated your financing strategy?

However, smaller properties tend to have asking prices influenced by factors like local demand or future appreciation potential, not just rental income.If you're finding that the numbers from the cap rate approach are consistently coming up lower than the asking price, it may be because the market value is being driven by different factors, especially in a competitive or appreciating area.I’d recommend using comparable sales as your primary tool while keeping the income approach in the back of your mind to avoid overpaying.

Keep in mind that each lender may have specific requirements based on your credit, income, and other factors, so you’ll want to check with them directly.I don’t do conventionals but I’d recommend reaching out to Brandon Croucier with All Loans Funding on here for those he’s really great. 

Locking in such a low rate means more cash flow if you rent it out, even with your HOA and property management costs factored in.Let’s tackle this using your numbers:Current Rent: $2,950/monthAnnual Tax, Insurance, HOA: $7,000Mortgage (principal + interest): Roughly $20,832/yearWithout even factoring in maintenance or vacancy costs, you’re likely cash flow positive.

I will definitely factor that into my planning as I move forward.