Many are looking to retire or shift out of active management, especially as interest rates rise.From what I’ve read in Bloomberg, Austin's market in 2025 remains highly competitive but still has opportunities in older neighborhoods and suburban areas.

Occupancy rates are not 90%, it's seasonal, especially the mountains.

In an ideal world, we'd look to get both, but with today's higher interest rates and rising home values, it seems harder for deals to cash flow. 

Part of it is due to a personal family issue, but part of it is due to the high prices and rates.

I also have two buy-and-hold rental properties and am passionate about exploring unique financing opportunities.Recently, I used a VA loan assumption to purchase an investment property at a 3.3% interest rate, which was instantly cash flow positive. 

Not true of all lenders but you may get better rates and terms as you gain experience.

The purchase price is $325,000, and as part of an end-of-year incentive, DR Horton bought the interest rate down to 3.99%.

Next PA has very strict requirements for interest rates which you cannot be in double digits.

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

The demand for market rate is good.