The Fed’s June summary of economic projections released Wednesday shows interest rates near level zero lasting the rest of this year and the next couple of yearshttps://www.bankrate.com/banking/federal-reserve/fomc-meeting-recap-june-2020/

You should include Management (10%), even if you plan to self-manage at first.If your expenses are going up faster than rent, let's say 2% vs. 3%, then your cash flow will get squeezed over time, BUT your largest expense (debt service) is fixed, so the squeeze may not be as bad as you think.Since this is a residential property (1-4 units) its value is based on other comparable properties and has nothing to do with rents, expenses, cash flow, return, etc.

This is particularly important in a down economic cycles when unemployments is high -- like during the COVID pandemic.

At the top level, it's a basic economics question.

It will be the largest redevelopment of city-owned land since Mueller.https://www.kvue.com/article/money/economy/boomtown-2040/city-of-austin-moving-forward-with-plans-for-colony-park-development/269-a6ccf361-a797-47f0-934e-8cf562394a64

It will be the largest redevelopment of city-owned land since Mueller.https://www.kvue.com/article/money/economy/boomtown-2040/city-of-austin-moving-forward-with-plans-for-colony-park-development/269-a6ccf361-a797-47f0-934e-8cf562394a64

My advice is, read the fine print and understand the economic trade-offs you’d be making.You can come out ahead, but usually not as far ahead as appears on first glance, so make sure you understand the full deal that you’d be striking.The few that I investigated, I decided limited my future options too much so I chose to pay market interest rates to retain my flexibility with the property/project, or in other cases decided not to pursue the project at all regardless of financing terms.One important thing to look for is whether the financing (and obligations) transfer to any future owner and if so, under what terms, or if they do not, and instead trigger some kind of backout/payout clause on you.Many of those tax/loan programs stretch out over years, and since it’s hard to predict the future, it’s also hard to understate how they can limit your future options with the property.For example, many times we’ll do a 10-year holding projection initially but market conditions after only 4 or 5 years might warrant considering an earlier exit.

Houston is pretty insulated from broader economic recession given O&G gas jobs are highly paid.

And, I believe, the stability of these type of homes and the rental model you are working with will only solidify due to COVID and an impending economic short-fall for the following reasons;1.

A day later, the Buda Economic Development Corp. announced a similar project in the Hays County suburb.