On a daily basis I get questions from investors/property owners about the rental rate for their rental property.

They are short term loans, usually 6-12 months, high rate, interest only payments. 

Working with a mortgage broker that specializes in DSCR loans will help you find better rates and programs such as lower DSCR ratios such as a DSCR 1 ratio for better terms versus needing a 1.2 or 1.25 DSCR ratio (more on that below).

If rates come down (most likely not in 2025) you can refinance or just shovel cash-flow and pay it down quicker. 

It is going to be near impossible to cash flow on a property with 100% financing, especially if that partners rates are above conventional rates.

My basic underwriting making some standard assumptions on HOA expenses, 20% down, 7% interest rate, 30 year mortgage, utilities, supplies, and maintenance costs shows a loss of about $22k per year if you are self managing.

For an example, we Googled, "hourly rate for handyman Austin, TX" and got this:AI Overview: As of January 2025, the average hourly rate for a handyman in Austin, Texas is between $25 and $25.28.

Charge the tenants a higher rent rate and include utilities with their rent.

If you aren’t saving the money up to buy another property chances are nothing will pay a higher rate than paying it towards your mortgage.

The interest rate is not special nor is the 20% down (80% LTV).