Ask questions about the challenges and location.Agents are also another option to guide you through an unknown market.If you want to start your research, here are a couple of areas to note.Katy, Cypress, Spring, some parts of Houston, Conroe, Tomball, Pearland are great places to own rentals.

Ask questions about the challenges and location.Agents are also another option to guide you through an unknown market.If you want to start your research, here are a couple of areas to note.Katy, Cypress, Spring, some parts of Houston, Conroe, Tomball, Pearland are great places to own rentals.

I've never bought a 1% or even come close to a 2% deal because I don't want to pay the unknown prices for those- poor tenant quality, high vacancy, turnover and maintenance costs and low or no appreciation.

Probably at least 20% or more, this will help cover the unknowns and inflation.The contractor may charge you to prepare an estimate, however look at cost of the estimate like an insurance policy. 

I would estimate conservatively for your utility costs if they are unknown but once you go under contract, you can definitely get information from the sellers on the actual costs. 

There are so many unknowns and I am just curious what other people would do in our position.

@Larry TurowskiPurchase price: $175KDown payment: 20%Current rents: $600 each unit=$2400Taxes: $4343Insurance: $745Interest rate: 5.50%Repairs needed: Unknown

Sure, fear of losing money, fear of failure, fear of the unknown, fear of disappointing others in fear of change are all very true to Most people.

As shown, the Cash-Flow is a much better indicator of a property than a Cap Rate but it is more difficult to derive as it depends upon an unknown, the mortgage payment and that has other economic considerations.

Are you using the standard 70% of ARV- repairs-10% for unknowns- wholesale fee?