Do you have funds for your next primary purchase or are you needing to tap into the equity to get closing costs and down payment?

Make sure that the tenants are actually paying rent and making payments on time.

Purchase price: $300,000 Cash invested: $65,000 Sale price: $455,000 This house needed a full renovation to compete in the challenging Austin, TX housing market.

@Andrew JaquezI think what you're missing is... there will be lots of other expenses, and there is a 0% chance you will cash flow that much.It sounds like you've been going there in person to look at properties - is that right?  

Here's a few of my thoughts:Positive cash flow is key in your situation.

Purchase price: $140,000 Cash invested: $20,000 This was my first home that I purchased back in 2021 when interest rates were still low and competitive.

They do use leverage in acquisitions (like all real estate syndicators I'm aware of) but their properties are bought with retained cash equity of 20+%. 

If the rental unit has too little cash flow, the quality of the home will obviously decline. 

For properties in that range, my monthly payment will be more than 40 percent of my monthly income but I should still be able to pay for that by renting the other rooms.

They are now requesting an addendum stating that each person is responsible for their own rent, and payments are not mutually exclusive.