Man, just in 3 years if you have the tenant leave every time, even without the negative cashflow, that alone can cost you an additional 20 or 30k.

Quote from @Chris Seveney: Quote from @Devin James: In 2021, we saw buyers upgrading to larger homes, taking advantage of 3% interest rates to afford an extra 300+ square feet.Today, smaller homes are selling much faster as higher rates make additional square footage less affordable.While rates are historically average, I don’t see them dropping significantly.

FHA now allows us to count rental income from an ADU (additional dwelling unit) to help borrowers qualify.

While it does offer stability in rental income, there can also be frustrations, especially around dealing with inspections and bureaucracy.

Do you have additional capital to add?

I would recommend matching old reservation rates and offering free gifts to secure good reviews and booking momentum. 

However, exploring out of state markets could offer stronger cash flow upfront, so it’s worth evaluating both paths.A piece of advice would be to focus on building your core 4  team: agent, lender, contractor, and property manager.

@Susan Tan you may also have lending options in the Houston area that offer 100% LTC financing for rehab projects.

In addition cash flow is taxed annually.  

Quote from @Lionel Quiambao:  ... and maybe throw in the option for the tenant for more speed at an increased rent to cover the additional payment.