., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

To succeed, focus on properties in high-demand neighborhoods like Pecan Grove or Aliana, and ensure your cash flow analysis accounts for high property taxes, potential HOA restrictions, and flood insurance costs.

Purchase price: $189,000 Cash invested: $40,000 Mid-term rental property in a college town.

My preferred market buyers being investors and cash-buyers.

I bought this home in 2013 and also did a cash out refi during COVID so buy interest rate is 3.875%.

  $6k per month and $30,000 to get it going and it cash flowed about $20k a month. 

My first reaction to your post is if you're purchasing assets that are throwing off positive cash but your DTI is going up then it may be time to re-evaluate the type of assets or the expenses associated with those assets.  2.

Cash Flow Management: If you take out additional debt, it's crucial to have a plan for managing your cash flow. 4.

If you do decide to start flipping homes- as a new investor you can either self finance with all cash, or you can contact a commercial lender like myself and expect terms to be 75-80% of the purchase price with 100% of the rehab financed through a draw.

For newbies, I recommend starting with a turnkey cash flow rental.