I got burned on this once with a coastal property where insurance ate 22% of gross rent, and the deal that looked solid on paper turned negative fast.

So whether you’re positive or negative $150/mo doesn’t really matter.

The February 2026 statistics for the Austin five-county metro show a market that is gradually gaining momentum while prices continue adjusting modestly downward.

First of all I said Im negative on most, not all.

When I'm analyzing deals I'm seeing negative monthly cash flow. 

Given the market, I'm not counting on any appreciation in the short term.My math brings me to a negative cash flow, despite having a very good rate compared to if I were to buy an equivalent property today at current rates. 

The plan is to offset the losses from renting out the FL home (will most likely be negative $1000 a month) by the cash flow we could potentially get from other rentals.

You're calculating it on your adjusted NOI (after mortgage), which gives you a negative number that isn't really cap rate — that's closer to cash-on-cash.

San Diego fundamentals.Near-coastal supply is limited, which is why many owners accept negative carry in that market.

That said, I’m still underwriting responsibly with reserves for CapEx, maintenance, vacancy, and management (8% each).The problem is: almost every deal ends up with negative cash flow and negative cash‑on‑cash return once I factor in those reserves.