The shorter the prepayment term has an impact on increasing the rate.4.

A lot of lenders used to apply 35% for expenses, but in the last several years, the numbers for supplies, labor, utilities, taxes, etc… have increased significantly.Also take into account the age, occupancy and how has the property been maintained, this will affect the expenses too

I would slow down and think about your BUDGET, what you can get for $30k, and how you can increase your income.

My interest in entity transfers is the ability to forego a massive increase in the tax bill upon reassessment.

Lots of opportunity to find mismanaged multis as well where the older mom and pop landlord has rents way below market and can come in and increase NOI just by getting units up to market rent and maybe doing some cosmetic rehabs as tenants move out.Value add multi is what I prefer and think works best here but that's with me being here boots on the ground and being more active with it.

I’m trying to familiarize myself with the area more thoroughly.it seems to have a stable increase in prices.Since I plan to live in the property initially, breaking even in the first year is my main goal. (5% down; PMI removed with renovation)However, I’m also wondering if it’s feasible to have some cash flow from such rentals, or if the risk of vacancy is high in this market.Any guidance or pointers from those experienced in this area would be greatly appreciated!

If you are open to value add strategy, small multis have potential for not only traditional forced appreciation but also the ability to see major rent increases.  

The only additional thing that needs to happen is make sure appraiser makes note of why the value increase in as is vs previous purchase price.

**************************************************************************Insurance premiums of American homeowners rose last year, with rates increasing by more than 20 percent in six states, according to a recent report from S&P Global.In 2024, insurers raised rates by 10.4 percent as of Dec. 27, which followed a 12.7 percent hike in the previous year, according to the Jan. 21 report from the company.In total, 33 states saw premiums climb by double digits last year, with the largest spike seen in Nebraska at 22.7 percent.

In the City of Austin, we saw a 6.5% increase to $575,000*Total sales increased 2.5% in the metro.