First investment Construct and Rent

[Jessica Uresti]

First time investors. We found a property (multi-family) 2 units, 2 bedrooms/2 baths in the front house, and a full bath with kitchen efficiency in the back unit. Good price in a developing neighborhood near downtown Houston. Construction was stopped midway and it is for sale. We brought our contractor to take a look and he gave us a estimate. We will be getting a more detailed estimate. From what we know of the cost of the house plus to finish construction we can afford the loan. Also putting the numbers in, the rental income should give us maybe $400 -$900 profit a month once both are rented.

Our lender and realtor seem to think we are crazy because the property needs floors, walls etc etc to be completed. I am wondering if we could be getting in over our heads on this.

Any thoughts? Thank you.