I remodeled it with very high end fixtures and now rent it out as a furnished high end rental. So comparable market rent for the unit would be $1400/mo, but because of what I did to the property I get almost $2K/month on average (accounting for vacancy period). I cash flow about $300/month. It helps I put 20% down, and that I am on an ARM, so my interest rate is less than 3% right now, buy my principal balance reduces by $500 each month. With the extra cash flow I pay down the principal by another few K each year, so when rates climb again, I should still be in a cash flow position.
My best buy: In 2012 I bought a 2br condo in San Marcos for $115K. I cash flow on that unit $300/month right out the gate. it’s on a 3.99% loan for 30 years. Comps are going for $160K today.
I’m a buy and hold type of investor, so I focus on long term profitability. I’m okay with market fluctuations and focus on how to maximize returns with what I have, and the best way to do that is get and keep great tenants.
