The interest rate is 7%, so we suggest this property is for someone who wants to get into Lease Options and meets the other requirements such as adequate reserves and credit.That means, they buy the property, they wind up with $50,000 in equity and they do a Lease Option to a buyer who doesn't currently own a house, but wants to.

It's not as high performing as what's traditionally recommended (it's still cash flow positive but has a small margin) but that has a lot to do with the high interest rate.

They have definitely become more challenging since rates have gone up.

For an example, we Googled, "hourly rate for handyman Austin, TX" and got this:AI Overview: As of January 2025, the average hourly rate for a handyman in Austin, Texas is between $25 and $25.28.

My wife and I have overhauled our personal budget to reflect the 'pay yourself first' approach (allocate in order: income comes in -> invest -> donate -> fixed expenses -> variable expenses -> fun $$).We are looking to see what experienced people generally recommend for a holding tank for that 'invest' allocation while we target our first real estate deal.What financial vehicles have you guys used that works well for this?

Do you prioritize cash-on-cash return, equity buildup, cap rate, monthly cash flow, or something else entirely? 

Hello Jon, Renting a 3500sqft house comes with a few challenges.

I wouldn't touch your current loan unless rates drop 1-2%.

this is a direct relation to lack of inventory.. new construction on many markets is as robust as its ever been.. we have had spectacular years the last 3 years of course during covid was tough with supply chains but my 500k house I am now selling for 700k and my build cost have gone up by maybe 100k.. so record profits for us.. 

The house was bought first week of decemeber with a finish date planned for March.The went over the time for completing the work and blamed it on the snow in the area.