On the 15th year, the investor and I will discuss together whether we want to sell the house OR continue receiving cash flow.

A good deal won’t matter if your contractor delays the timeline, eating into profits through holding costs.

The reason is the rent-to-price ratio is good so you can cash flow, and most of the West side doesn’t have a Point of sale inspection which is really annoying.

Here’s how I’d break it down and strategize your entry point.Key considerations include the current and pro forma cash flow.

And mercifully, building wealth is a more important goal than the cash flow, to be sure.

I literally laughed through the phone at his suggestion, because I was broke, in debt, and in every way and unqualified borrower, and the lending environment in 2012 was probably stricter than it had been since the invention of the 30yr mortgage.

Not the cash flow play a lot of people expect. 

My budget is slightly constrained for this first property so looking to save on purchase price and hopefully add value through renovations.

Honestly if you are doing STR I would suggest doing Austin itself rather than all the way out there in Kyle - maybe a couple of years ago when the prices were through the roof in Austin city itself this would be a good alternative but there is a blip right now where you can get a god entry point in Austin (downtown/east ideally) for STR

Personally I would not take a negative cash flow deal.