BOUGHT FIRST HOUSE, How do I create cash flow
I just bought my first house and took the first steps to creating my financial freedom. I bought the house close to the end of September during peak market (I know not the best idea.) My goal with the house is to rent it out long term and get cash flow because I know I bought at the high end so the house might not appreciate even though its in California.
Okay time for the number break down! I ended up getting a decent interest rate of 3.2% ( I could have gotten lower but they offered me a grant program that gave me $7K for my down payment and $7K for closing costs.) Final purchase price was $262,500, with a down payment of $13,125. So final loan amount of $249,375. I ended up finding a good rate for homeowners insurance, so PITI a month is $1,450.50.
When I analyzed the property back in September, rent for this 3 bed 1 bath was running for about $2,300 a month and it seemed like a no brainer because the house was already fixed up and needed virtually no work. HOWEVER, most rent info I've gathered for the area right now is telling me that potential rent has dropped down to 1,750 :/. Even if I could get 1800 a month, id be losing money.
THIS is where I need your help, guys. My bank is allowing me to turn this property in to an investment property in 6 months time. What can I do to get this property to cash flow? i know rent might be higher in half a year but i don't only want to hope on that. what do you think? I AM OPEN TO ANY AND ALL IDEAS