Thanks The older homes usually require some sort of updates to the plumbing/electrical to get a decent rate if you are wanting replacement cost.

Super low vacancy rates in SD, even STR's. 

The market has been on the upswing with low interest rates since 2012. 

However, if the FHA interest rate is lower, I would still go that route and if rates drop refinance  however keep in mind FHA has PMI for life  Here you go

So, what is happening today is not as important as what will happen in the foreseeable future.If rents are increasing faster than inflation (I use 5% per year as an average rate), then it may be worth holding the property, since your cash flow will increase as rents rise.However, in your post you stated, "Mortgage rates have kept increasing as well, that's why I put a range on negative cash flow."

If your goal is to maximize cash flow, look for properties where you can live in one unit and rent the others at market rates.

Especially when considering the tax implications, current interest rates, and if you don't have another purchase lined up.Happy to send you an analysis and proforma for your properties as they stand right now, kindly reach out anytime. 

(Not being a vet I’m not sure of the interest rate difference but know that the 3.5% down FHA is often worse than a conventional 5% down.).

As a percentage closing cost as percentage goes down as value increases but we will 15X to account for closing costsNo cash flow per OP.2% market appreciation equated to 30% + 15% = 45% 3% market appreciation equates to 45% + 15% = 60%4% market appreciation equates to 60% + 15% = 75%Recognize in virtually all markets the cash flow increases with hold length especially if a fixed rate loan. 

A lot of people tend to mingle these things when they talk about "break even" or "cap rate", but that leads to a lot of confusion.Let's use some real numbers which may be easier to understand.