We're new to real estate and would appreciate advice on our current home in Texas and our future place in Oregon.We love our house in Austin and aren't ready to sell, but as a long-term rental, it would yield (from what I understand) negative cash flow, covering principal and interest but not taxes and insurance.

For us, we have insurance on it and found it easier to keep in the trust vs. llc and have to deal with state filings etc. 

@Dominic Mazzarella Those are good points to keep in mind, and factors any investor should look at when making the decision to invest. 

@Vessi Kapoulian - You're right, the local market knowledge is irreplaceable when it comes to underwriting and making sound investment decisions.

Sounds like it makes sense for you to partner, I would suggest: spell out responsibilities very clearly, how you make decisions and most importantly: have a very clearly spelled out exit. 

Rock that for about 12 months and add some equity and then you could refi out to conventional so as you pay it down in the future the mortgage insurance will drop off.

It depends on what the property appraises for in 24 months,  if you will be able to get home owner's insurance, if lenders are lending and so on.

If I were you, I'd pass on this property and look for something else (and I suggest a 3 BR) under $80 that you can put a little rehab into, unless insurance pays your family member a bunch of money and they accept a much lower price. 

It's a big decision, and I recommend spending some solid time in each area.

(NY counties are generally quite expensive)Do you have home owners insurance to cover fire or other damage?