1/1 multi-family

[Scott Ma]

All, I came across a couple of deals in Houston that someone has converted a 5/4 house into a 5x1/1 (studio type). The number I ran seems to be ok. What is your opinion on 1/1? I never rented a 1/1 in my life and don't know the pros/cons of renting in the studio market. Thanks!!

cash: 100k

per unit: $450/month (90% occupancy rate) ~24.3k/year

property management: 10%

tax: $300/month

 general misc & maint. $200/month - most part of the house has been updated.

mortgage $900@5% (20% down)

Monthly NOI: $422

Annual NOI: 5k