I’m learning to factor in conservative growth in both rent & appreciation AND cost increase (HOA, tax, insurance). What numbers do you use for calculating growth to cost ratio when analyzing a property? For ex. Rent at 2% growth but cost 3%, etc?

I’m thinking about purchasing a new construction townhome at $2650 mortgage 3 bed at 335k at 4.5% interest rate through FHA loan 3.5%.

The current rent market is 2200-2300. So obvious cash flow. But my plan is to live there for about a year and live with roommates and offset my mortgage – which is better than paying rent at $1900.

An important question is – if I move out of state after a year and turn this into a unit rental, I have several costs I need to keep in mind even if I predict conservative growth of rent at 2%. Im trying to understand how much I should factor in for cost of growth in the future.

1. I may require a property manager to maintain by 8% rent/month and 1 month rent every turn over.

2. HOA, tax and insurance will also rise. How much % should I estimate for this growth annually?

3. Anything else I should keep in mind in terms of cost other than these?
   ChatGPT told me 5% cost makes sense.

4. Then I am going against 2.5% rent increase, and 2.5% home value appreciation and 5% cost increase annually – then if im starting with -$350 ($2650 vs. $2300), will this ever become a cash generating property?

Really appreciate your thoughts.