You posted the raw data, just go one layer deeper to get to % returns to confirm your purchase price in relation to your expected return/profit/cashflow:$5,500 + $3,000 = $8,500/mo or $102k/yr GOI (gross annual rent collected)Knock off 25% for expenses and you are at $71k/yr or $5.9k/mo NOI on this $1.05M investment or holding this at a 6.8% cap rateWith your 7%, 75% LTV loan, you'd be paying $5k/mo for the loan, leaving you with $900/mo or $10.8k/yr in Cashflow.Now to determine your CoC return (Cash-on-Cash), take the $10.8k in CF and divide it by your equity-in, likely ~$300k, so 3.6% return on your cash/equity in this deal.

Talk to some local PMs as wellIf your analysis confirms their recommendation you may have found a winner. 

@Cole Payton, I’m of the mindset to go with conventional mortgages for houses that I plan on holding, until the reserve requirements become too difficult.  

I would first confirm that your HOA allows rentals, specifically the terms that they allow, or any other rental restrictions that may need to be followed.

If you're confident these properties will appreciate and rents will increase over time, a break-even deal isn't necessarily a bad deal as long as you have reserves. 

After all, they were headed that direction before I stepped in to buy their house in the first place.In 2023 and beyond, I think acquiring houses subject-to is a smart strategy, especially if you plan to fix and flip because you don't need to keep the mortgage in the original seller's name for very long.As for acquiring rentals, subject-to is also preferable as long as you can count on at least $300 + in cash flow (and have reserves for 6 months). 

Confirm with a tax pro.

They are still responsible for damages (already in our Reservation Agreement) and we provide the same starter set of supplies whether it is 1 day or 3 months. 

If it is then spend the time getting the RIGHT education, building capital reserves, making contacts, and arranging financing options.  

Since spring 2022, when the Federal Reserve embarked on its latest rate-hiking cycle, interest rates on the most popular loans for real estate investors, DSCR Loans (part of the non-QM loans category), have moved at unprecedented rates.