I like the space as this is pretty fragmented vs MH, so cap rates seems to trend higher. 

., plumbing, window replacements, and sheetrock repairs), but it still needs work to get the vacant units ready to rent.It’s located in a neighborhood with a higher crime rate but also near major highways and areas with rental demand (e.g., downtown Fort Worth and Texas Christian University).My Goal:I’m focused on cash flow, and this property seems like it could work if I can stabilize it.

Typically, the adjustments I see on appraisals for basements are more flat rate adjustments. 10k is usually the number I've seen.What stinks is that there are a couple of model types that have below grade space where the builder, I'm sure, was trying to lower the taxes by having it below grade so the county wouldn't count that space in the assessment.

By doing this we qualified for a larger mortgage because we could use the rent from the other tenant to qualify and there are better lending programs when it’s “owner occupied”.  

@Amir PortalFort Worth (Southside): Affordable entry points with growing rental demand due to development and school proximity.Arlington: A solid mix of price points and strong rental potential, especially near UT Arlington or entertainment districts.Focus on areas with rising population growth, job opportunities, and low vacancy rates.

What is the interest rate on borrowing compared to the rate you are earning, then take into consideration the tax consequences. 

@Michael HoustonSo cap rates are for commercial properties so they have no use in 1-4 unit values.

Here is one piece of advice When looking at areas to invest in check out this website https://www.areavibes.com/ its pretty cool it gives you a total livability score and rating for that areaBest of luck!

The property was rented and generated $160 cash flow after mortgage, taxes, insurance and property management fees were paid.

AirDNA shows it on the rise in terms of annual revenue, occupancy rate, average daily rate and revpar, with about 3,000 total listings.