Assess capex.  6. 

I lived in Houston for about a dozen years.

You’ll be able to calculate potential returns, assess property conditions, and weigh your options more clearly.

My view is you have incorrect risk assessment especially if this is in a single family zoned area.Here are some of my thoughts- 2 ADUs disqualifies from Fannie/freddie conventional residential financing even if both are legal. - appraisal could come back subject to corrections. - unless you get some whacko judge, there should not be any issue collecting rent on unpermittted unit, having a move-out cost (no fault eviction) in excess of the standard rent control or eviction process in excess of standard rent control hurdles.    

The majority of my business is STR properties in Scottsdale and I sell about 2-5 STR homes per month and own about a dozen myself.

@Jon Haney management should have assessed at the time of the incident, at least my PM does before contacting me for a major incident.

In the long run, you should see cashflow go up but you probably aren't going to retire off cashflow in the early years, even if you bought a coupled dozen properties.So, if you want to dip your toe in the water the easy way, start with a turnkey rental. 

This post will explore the sponsor underwriting process, utilizing a structured and practical approach for assessing potential sponsors.Sponsor Screening ProcessThe sponsor screening process can be divided into several key steps, each crucial for a thorough evaluation.

Just have to make sure the rent can cover the mortgage (this is where you assess rents in the area or ask your agent for rent comps).

I specialize in BTR duplexes in Indianapolis, and I’ve found that local connections are invaluable when assessing markets, especially for long-term strategies.Learn from Real Deals: As you move forward, it’s helpful to analyze real deals, even if you’re not ready to buy yet.