CAP Rate = Net Operating Income / Property Value (Purchase Price).

DSCR loans do not come with rehab funds.

That property would never cash-flow with today's interest rates.   

There are conventional loans as well with low down payments and the PMI falls off once you reach 20% equity.In this higher interest rate environment, lower down payments does make it harder to cash flow, so just keep that in mind.

While waterfront properties often command higher prices, higher potential rental income, and higher appreciation rates through time, they also come with significantly higher upfront costs and huge maintenance expenses.

Of course, since most HELOCs are adjustable, this will change for better or worse as rates change.

Local markets are impacted more strongly by local factors than national ones such as changes in interest rates. 2.

However, the home is in an A-class area that is rapidly growing and could prove profitable once the property could be refinanced at a lower rate.

Yet, I barely survive thanks only to the pandemic era low interest rates and tax abatement.

That included my personal emergency fund.