I think you’ll find that just about every rental house you look at the landlord will be cash-flow negative unless the owner has owned the place at least four years.
During our search, we could obtain sales data for all but two (the county website keeps them for two years). Running generous numbers, none of the recently purchased houses were anywhere close to cash-flow positive.
One potential landlord even told me what his monthly outlay was on the place. Even with rental income, he was bleeding $1,500/month.
If you have a lease, the landlord cannot sell the house out from under you. If he’s foreclosed, I would think your lease would complicate matters.
