Are interest rates changing your deal criteria? High prop taxes?
With interest rates rising, looking to purchase a rental property now is more expensive. This results in lower cash flow, and potentially makes what would be a deal 1-2 years ago, into a negative cash flow property now.
How are you looking at rising interest rates? When running numbers, are you still sticking to your cashflow goal (of say $200 a month) or are you okay with less cash flow a month in the hopes of refinancing some time in the future. Since long-term rentals are exactly that, long term, it's important to not only focus on the numbers right now, but also in the future.
One other thing I've been running into is running my numbers and finding very high property taxes. From the numbers i've been running, it seems like property taxes on non-homestead properties in my price range (150-200K) are around $500 a month, which seems to kill any deal in itself. Does anyone else deal with high property taxes that potentially sway the numbers? What are your thoughts?