It's all about the neighborhoods you are investing in.

Are you targeting any specific areas/neighborhoods like Maywood, Garfield Park, Speedway?

Some clients who are more aggressive will invest in B-/C+/C class areas in Dayton 1-4 units and get A LOT of cash flow, but incur risks of evictions, expensive turnover renovations, and general C class neighborhood headaches.What are you looking to achieve?

Houston's diverse, and the real estate market is buzzing.Check your budget, how much risk you can handle, and what you want from the investment.Montrose, The Heights, Eado, and Museum District are buzzin' with mid-term rental potential.Research the neighborhoods, check the rates, and do the math on costs before diving in.

Meanwhile, gross rents of $1,800+ for 3-bedroom single-families is an achievable figure, so it’s possible to generate cash flow if you lever modestly.There’s a bunch of other stuff that’s worth highlighting—the economy, demographics, neighborhoods, new construction, and more.

Still researching and taking a trip out there to drive the neighborhoods.

Mechanicals, roofs etc. can be towards the end of their useful life and pass inspection but then the cap ex can't be absorbed in many of these C/D neighborhoods.

As long as the ADU is under 900 sq. ft. and meets the state building code, there will be no variance or special permit needed, so no ZBA or neighborhood meetings.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

I've personally driven this neighborhood and was amazed at how nice and clean it is.