HI @Akshay Bhaskaran, all is not lost :)
If you follow @Conner Olsen's example, and assuming that $1700 is net of all real and budgeted expenses then you'd be up about $500 in your case. Not bad, miles better than being negative, but a big repair or replacement could wipe out a year or more of income. However, as David Greene from the BP podcasts like to advise, while cashflow is important when you're starting out, appreciation is the key to building real wealth in the long run (The Real Estate Investing Podcast | BiggerPockets). So as long as you're not counting on that cashflow for living, and you can accept net zero or a little bit negative in some years, then I think it's valid to count on appreciation for your area. Considering that Samsung and Tesla are already there, chances are good that other high paying companies will follow, more people will come and home values will appreciate. Be conservative with your underwriting and assume 5% appreciation, and include the other expenses listed on BP calculator. And also include the fact that rents will increase every year.
Another thing that David advises is to find the worst property in the best area that you can afford, and fix it up to a standard that will attract high quality tenants/guests who are willing to pay more to stay there. $80k isn't much of a budget for buying and fixing, so you could look into getting a seller credit in exchange for a higher purchase price in order to finance a rehab. A lot of experienced investors say they still find good deals on the MLS, but you might consider driving for dollars and checking foreclosure listings. Look for properties where you could hack the floorplan to add rooms/bathrooms, thereby forcing the appreciation even more. Even better would be one with a big drive way or extra parking space where you could buy a car or RV for car sharing through Turo or some such, as another stream of income. Lots of people do very well from that, and it's not complicated.
Lastly, consider trading up your current place for a bigger one and house hacking.
There are 4 benefits to this investment strategy. First, you can use a conventional mortgage, which have the lowest interest rates. Second, primary residences require a lower percentage down payment. Third, any profits from selling the property aren’t taxed. And fourth, you'll learn many of the important skills that you'll need for future investments (analyzing properties, evaluating a property's 'best use', working with realtors & mortgage brokers, screening and managing tenants, hiring & working with contractors, understanding tax implications, etc). You have to live somewhere, anyway, so why not make your home a part of your investment strategy?
If the reason you're not currently house hacking is because you don't have any spare rooms, then consider trading up to a bigger place, or see if you can hack your floorplan to add an extra room. The cost of buying a bigger place could be offset by the rent that you'll get. Renting by the room is usually more profitable than getting a house with a rental suite. Also, some lenders will even include rents as part of your mortgage calculations. Later, if you sell, you’ll get the full benefit of a higher price for having bought a bigger place, along with any value appreciation. Bonus: look for a house with a hackable floorplan for adding rooms/bathrooms - ie. forced appreciation, in investor speak.
Other than money, there are a few things to consider when house hacking. Most important is the fact you’ll be living with your tenant (surprise! you are now a landlord). This can actually be a benefit if you did a good job screening the applicants – you might even become friends, or a nightmare if you didn’t. Your best friend may not be your best tenant if they have different standards of cleanliness, for example. Screening tenants and then dealing with them after they move in is both part art and part science, and it’s a critical skill to learn if you plan on owning rental properties as part of your investment strategy. Having bad tenants can ruin your investment goals, especially at the beginning of your investing journey when you only have a few properties and not much cashflow to fix any problems they might cause.
Taxes are another important consideration for house hacking. Rental income must be declared and is taxable. Unfortunately, any expenses associated with improving/maintaining the property for rental purposes aren’t deductible since it is your primary residence. However, if you later sell the property for more than you purchased it, either due to appreciation or improvements, you won’t be taxed on the profit because it’s your primary residence.
Serial house hacking is a great way to build your real estate portfolio, but it does involve the inconvenience of having to move frequently. The idea is that you start with one house hack to save for either a bigger property or an additional property as your new primary residence, move in to that one and house hack it for a year or more, and then do it again. The amount of time you have to stay depends on your local tax rules, and the amount of money that can be saved from hacking that property. Your old properties are then reclassified as investments, against which you can deduct appreciation and other expenses, like mortgage interest and repairs. David likes to say he thinks everyone should be house hacking at least one property every year, which of course assumes that rents and/or appreciation from existing properties are enough to fund your next purchase.
So, it's not impossible to invest in the area you want with the budget you have, but it will take a bit more time and effort, and maybe an adjustment to your strategy.