$30K+ in Equity, -$100/Month in Cash Flow — Worth Holding or Time to Walk?

[Carissa Atendido]

I'm currently under contract (still within the inspection period) on a SFH in San Antonio, TX — 3 bed, 2 bath, 1,565 sq ft, built in 2019.

The biggest reason I pulled the trigger on this deal is the walk-in equity. Based on comps and conservative estimates, the home is valued between $258K–$260K. My offer was accepted at $230K, and I’m hoping to negotiate that down further after inspections.

This isn’t a cash flow play — I bought it for the equity and long-term potential. That said, I don’t want to bleed cash each month, as that’ll eat into my equity gains.

Here’s the breakdown:

• All-in monthly expenses: ~$1,923
• Rental comps: ~$1,900/month, but realistically I’d need to list at $1,800–$1,815 to be competitive
• Estimated monthly loss: ~$108/month (or ~$1,296/year)
• Negative CoC return: ~-2.23%

The neighborhood is solid with a lot of new construction nearby and clear signs of growth. My plan is to hold for 4–5 years, hopefully see some appreciation, and then sell to roll the gains into 1–2 more properties.

My concern is that rents in this area may not rise fast enough to eliminate the cash flow loss — and I don’t want to be stuck with a negative cash flow property longer than expected.

I’ve already sunk about $1,000 into inspections, travel, and the option fee — which I know is a sunk cost at this point. But I’d rather lose $1K now than thousands later if this turns out to be a bad deal.

My questions for the community:

• Is this type of negative cash flow (for an equity play) fairly normal in year one?
• Would you proceed with a deal like this in a growth market?
• What factors would make this a “still worth it” situation vs. a “run while you can” one?

Appreciate any advice, feedback, or gut checks. 🙏

[Nicholas L.]

@Carissa Atendido

hello.  i'm with the others - i'm skeptical that it's actually "worth" $260K and you're getting it for $230K. if it's on the market - it's probably worth what you're paying for it.

i'd also ask:

-what is your TOTAL cash outlay to get in?  down payment + closing costs + rent ready costs?

-are the expenses TRULY $1,923 a month, or is that just PITI + property management?

the market IS tough right now.  but it just does not make sense to sink $50K into an investment that is going to lose you money for years.