@Beck DeYoungNegative cash flow in real estate investing can be attributed to factors like low down payment, high housing costs, and poor expense accounting.

Hey @Taylor Cook, I responded to your email this morning. 

I once had someone show up at 830 in the morning knocking on the door asking to be let in.

Also factor in your ability to do more deals because you’re fully focused on real estate.

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.

Investing in energy-efficient appliances, insulation, and solar energy systems can increase your property’s appeal and reduce long-term operating costs.By paying attention to these economic factors, you can make informed decisions about property acquisition, pricing, and tenant targeting, ensuring a more robust rental strategy.

Being that the loans are based on the potential income, would employment also be a factor?

You just have to factor these in when you submit offers.

See the chart from Fair Isaac Company (FICO) below: FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% Source: Fair Isaac CompanyAccording to this chart, investors should use corresponding vacancy+tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure.

Market Considerations: What factors should I be most mindful of when investing in a new market?